Consider the Following Formulas Given the Same Values for N and R in Each

question 45

Essay

Consider the following formulas: $${ } _ { n } \mathrm { P } _ { \mathrm { r } } = \frac { \mathrm { n } ! } { ( \mathrm { n } - \mathrm { r } ) ! } \text { and } \mathrm { n } _ { \mathrm { r } } = \frac { \mathrm { n } ! } { ( \mathrm { n } - \mathrm { r } ) ! \mathrm { r } ! }$$ Given the same values for n and r in each formula, which is the smaller value, P or C? How does this relate to the concept of counting the number of outcomes based on whether or not order is a criterion?

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Definitions:

Fixed Costs

Expenses that do not change in relation to the volume of production or sales, such as rent, salaries, and insurance premiums.

Fixed Expenses

Costs that do not change with the level of company activity or production volume, such as rent or salaries.

Unit Contribution Margin

The profit per unit sold, calculated by subtracting the variable cost per unit from the selling price per unit.

Break-Even Point

The level of production or sales at which total costs equal total revenue, meaning the business neither earns nor loses money.