A Company Has 20 Cars That Are Available for Use

question 10

True/False

A company has 20 cars that are available for use by company executives for official business purposes. Six of these cars are SUVs, 8 are luxury type cars, and the rest are basic sedans. Suppose the cars are randomly assigned each week. If 5 cars are put into use, the chance that none of the SUVs or luxury cars will be in the group is approximately .0004.

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Definitions:

Long Run

A period sufficient for all inputs to production, including capital, to be varied.

Long Run

A period of time sufficient for all markets to adjust to changes, including the reallocation of resources and entrance or exit of firms in an industry.

Perfectly Competitive Industries

Markets where no single buyer or seller has the power to influence prices, and where products are homogeneous and information is freely available.

Easily Enter And Exit

A term used to describe a market condition where barriers to entry and exit are low, allowing for free movement of firms into and out of the industry.