Provide an Appropriate Response

question 98

Essay

Provide an appropriate response.
-List the two requirements for a probability histogram. Discuss the relationship between the sum of the probabilities in a probability distribution and the total area represented by the bars in a probability histogram.

---

Definitions:

External Costs

Costs that are not borne by the producers or users of a good or service but by third parties or society at large, such as pollution.

Government Interference

Actions taken by government to affect decisions made by individuals, companies, or other governments, which can include regulations, laws, and taxes.

Market Equilibrium

A situation where, at the current price, the quantity of goods supplied equals the quantity of goods demanded, leading to a stable market condition.

Optimal Allocation

The most efficient distribution of resources and services, maximizing the benefit from their use.