If the Probability of Occurrence of Event a Is Not

question 186

Multiple Choice

If the probability of occurrence of event A is not affected by the occurrence of event B,then A and B are said to be:

• A)mutually exclusive.
• B)statistically independent.
• C)collectively exhaustive.
• D)basic events.

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Definitions:

Perfect Competition

A market structure characterized by a large number of small firms, identical products sold by all firms, no barriers to enter or exit the market, and perfect knowledge of prices and technology.

Marginal Product

The additional output produced as a result of employing one more unit of a particular input while keeping other inputs constant.

Value of Marginal Product

The extra revenue a firm gains by employing an additional unit of input.

Labor Demand

Labor demand reflects the quantity of labor that employers are willing and able to hire at a given wage rate in the market.