Let's Assume You Are Having a Party and Have Stocked

question 25

Multiple Choice

Let's assume you are having a party and have stocked your refrigerator with beverages. You have 12 bottles of Coors beer, 24 bottles of Rainier beer, 24 bottles of Schlitz light beer, 12 bottles of Hamms beer, 2 bottles of Heineken dark beer and 6 bottles of Pepsi soda. You go to the refrigerator to get beverages for your friends. In answering the following question assume you are randomly sampling without replacement. What is the probability the first beverage you get is a beer?

• A) 0.9250
• B) 0.9000
• C) 0.9487
• D) 0.7750

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Definitions:

Purely Competitive

Another term for pure competition, it refers to a theoretical market structure with a large number of buyers and sellers, homogeneous products, and free entry and exit from the market.

Output Level

The total amount of goods or services produced by a business or economy within a specific period.

Economic Loss

A situation where total cost exceeds total revenue, resulting in a negative profit for a business.

Average Variable Cost

The total variable costs divided by the quantity of output, indicating the variable cost per unit of output.