SCENARIO 5-6 a Certain Type of New Business Succeeds 60% of the of the Time

question 20

Short Answer

SCENARIO 5-6
A certain type of new business succeeds 60% of the time. Suppose that 3 such businesses open
(where they do not compete with each other, so it is reasonable to believe that their relative successes
would be independent).
-Referring to Scenario 5-6, the probability that all 3 businesses succeed is ________.

---

Definitions:

Quantity Demanded

The amount of a good or service that consumers are willing to buy at a given price at a specific time.

Equilibrium Price

The price point at which the quantity of goods supplied equals the quantity demanded, resulting in market balance.

Equilibrium Quantity

At the equilibrium price, the volume of goods or services both offered and sought.

Quantity Supplied

The amount of a good or service that producers are willing and able to offer for sale at a given price level in a given time period.