Which Rule of Probability States That for Two Non-Mutually Exclusive

question 10

Multiple Choice

Which rule of probability states that for two non-mutually exclusive events the probability of each event occurring is equal to the sum of their separate probabilities minus the probability of their joint occurrences?

• A) bounding rule of probabilities
• B) restricted addition rule of probabilities
• C) general addition rule of probabilities
• D) restricted multiplication rule of probabilities

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Definitions:

Short Run

The period of time for which two conditions hold: The firm is operating under a fixed scale (fixed factor) of production, and firms can neither enter nor exit an industry.

Total Variable Costs

The sum of all costs that vary with the level of output or production.

Variable Costs

Costs that change in proportion to the level of production or business activity, such as raw materials and labor expenses.

Fixed Costs

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance.