The Number of Power Outages at a Nuclear Power Plant

question 94

Short Answer

The number of power outages at a nuclear power plant has a Poisson distribution with a mean of 6 outages per year.The probability that there will be exactly 3 power outages in a year is _____.

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Definitions:

Excess Capacity

A situation where a firm is producing at a level less than its potential maximum output, indicating underutilization of resources.

Monopolistically Competitive

An economic scenario where multiple companies offer products that are alike but not exactly the same, providing them with a certain level of influence over the market.

P < ATC

A situation where the price of a good is less than the average total cost of producing that good, indicating a potential loss to the firm.

Optimal Output

The level of production where marginal cost is equal to marginal revenue, maximizing profit or utility.