If Two Events Are Mutually Exclusive and Collectively Exhaustive, What

question 44

Multiple Choice

If two events are mutually exclusive and collectively exhaustive, what is the probability that one or the other occurs?

• A) 0
• B) 0.50
• C) 1.00
• D) cannot be determined from the information given

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Definitions:

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the profitability of a business venture beyond basic operating costs.

Unimpeded Entry

A market condition where there are no barriers for new firms to enter and compete in the industry.

Purely Competitive Firm

A company that operates in a market where there are many buyers and sellers, none of which can influence market prices significantly.

Long Run

A period of time during which all factors of production and costs are variable, in contrast to the short run where some are fixed.