According to a Survey of American Households, the Probability That

question 65

Multiple Choice

According to a survey of American households, the probability that the residents own 2 cars if
Annual household income is over $50,000 is 80%.Of the households surveyed, 60% had incomes
Over $50,000 and 70% had 2 cars.The probability that the residents of a household do not own 2
Cars and have an income over $50,000 a year is:

• A) 0.12
• B) 0.18
• C) 0.22
• D) 0.48

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Definitions:

Cartel Agreement

An agreement among competing firms to control prices or output in a particular market, often resulting in higher prices.

Many Firms

A market condition where there is a large number of sellers, promoting competition and diversity of products.

Different Costs

Various expenditures a business incurs, such as fixed, variable, direct, and indirect costs.

Barriers to Entry

Factors that make it difficult for new firms to enter a market, such as high start-up costs, stringent regulations, or strong incumbent firms.