In a Large Metropolitan Area,past Records Revealed That 30% of All

question 19

Multiple Choice

In a large metropolitan area,past records revealed that 30% of all the high school graduates go to college. From 20 graduates selected at random,what is the probability that exactly 8 will go to college?

• A)0.114
• B)0.887
• C)0.400
• D)0.231

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Definitions:

Economies of Scale

The cost advantage that arises with increased output of a product, leading to a fall in the per-unit production cost.

Average Total Cost

The total cost of production divided by the number of units produced, essentially representing the per-unit production cost.

Marginal Cost

The financial outlay involved in the manufacture of one more unit of a product or service.

Monopoly Power

The capacity of a firm to control market prices and exclude competition, often by being the sole provider of a product or service.