(I a New Computer Game Has Been Developed and Its

question 12

Multiple Choice

(i. A new computer game has been developed and its market potential is to be tested by 80 veteran
Game players. If sixty players liked the game, the probability that veteran game players will like the
New computer game is 0.60.
(ii. A probability that is based on someone's opinion, guess or hunch is subjective.
(iii) The probability that a one-spot or a two-spot or a six-spot will appear face up on the throw of
One die is 1/2 or 0.5.

• A) (i), (ii) and (iii) are all correct statements
• B) (i) is a correct statement but not (ii) or (iii).
• C) (i) and, (iii) are correct statements but not (ii).
• D) (ii) and, (iii) are correct statements but not (i).
• E) (i), (ii) and (iii) are all false statements.

Understand the concept of marginal cost in the production of goods and services.

Describe the characteristics of a laissez-faire free-market economic system.

Explain the concept of the optimum level of resource use and its relevance.

Understand how environmental regulations can impact economic development positively.

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Definitions:

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for significant influence over pricing.

Product Differentiation

The process of distinguishing a product or service from others, to make it more attractive to a particular target market.

MC = P

A formula indicating that in perfect competition, the price (P) is equal to the marginal cost (MC) of producing an additional unit.

Economic Profits

The variance between complete earnings and aggregate expenses, taking into account both overt and covert costs.