The Probability Density Function F(x) of a Random Variable X

question 11

Short Answer

The probability density function f(x) of a random variable X that is uniformly distributed between a and b is: $\begin{array}{|l|l|}\hline\text { A. } & 1 /(b-a) . \\\hline \text { B. } & 1 /(a-b) \\\hline \text { C. } & (b-a) / 2 \\\hline \text { D. } & (a-b) / 2 . \\\hline\end{array}$

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Definitions:

MR = MC

A condition where a firm's marginal revenue (MR) equals its marginal cost (MC), commonly used to determine the profit-maximizing level of output.

ATC

Stands for Average Total Cost, which is the cost per unit of output, calculated by dividing the total cost by the quantity produced.

Average Total Cost

The sum of all production costs divided by the quantity of output produced, synonymous with the cost per unit including all variable and fixed costs.

Long-run Equilibrium

A state in which all factors of production and costs are variable, and firms in the industry make just enough profit to stay in business.