Two Events Are Independent If _________

question 104

Multiple Choice

Two events are independent if _________.

• A) the occurrence of one has no effect on the probability of occurrence of the other
• B) the occurrence of one precludes the occurrence of the other
• C) the occurrence of one substantially alters the probability of occurrence of the other
• D) the sum of their probabilities equals one
• E) the occurrence of one has no effect on the probability of occurrence of the other and the sum of their probabilities equals one

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Definitions:

Cartels

Formal agreements among competing firms to control prices or exclude entry of a new competitor in a market.

Entry Barriers

Obstacles that prevent or hinder new competitors from easily entering an industry or area of business.

Collusion

An agreement between two or more parties, often in a secretive manner, to limit open competition by deceiving or defrauding others of their legal rights, or to obtain an objective forbidden by law, typically by defrauding or gaining an unfair market advantage.

Homogeneous Product

A product or service that is perceived by consumers as identical in all essential features and quality to a product or service offered by competing companies.