If P(high) =

question 25

Multiple Choice

If P(high) = .3, P(low) = .7, P(favorable | high) = .9, and P(unfavorable | low) = .6, then P(favorable) =

• A) .10
• B) .27
• C) .30
• D) .55

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Definitions:

Marginal Product

The change in total output that results from the employment of one additional unit of a resource.

Marginal Cost

Represents the change in total production costs resulting from making one additional unit of a product or service.

Economies of Scale

Advantages in cost that businesses gain from expanding their production scale, leading to a decrease in the average cost per unit produced as the operation size grows.

Average Farm

Refers to a farm with characteristics (size, income, production level) that represent the mean or typical values when compared to the broader agricultural landscape.