Examlex
Which of the following is correct about a probability distribution? (i) Sum of all possible outcomes must equal 1.
(ii. Outcomes must be mutually exclusive.
(iii) Probability of each outcome must be between 0 and 1 inclusive.
Marginal Cost
The increase in cost that arises from producing one additional unit of a good or service.
Total Variable Cost
The sum of all variable costs associated with the production of a given level of output.
Total Fixed Cost
The sum of all costs required to produce any product or service that does not change with the level of output.
Average Fixed Costs
Average fixed costs are the total fixed costs of production divided by the quantity of output produced, which decreases as production increases.
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