It Costs $1,000 to Enter the Following Game of Chance,which

question 30

Multiple Choice

It costs $1,000 to enter the following game of chance,which is based on the outcome of a coin toss (fair coin) .If the coin comes up 'heads' then you win and walk away with $1,100,which is a 10% rate of return.If the coin comes up 'tails',then you lose and walk away with $900,which is a -10% rate of return.What is the standard deviation of the returns?

• A) 9%
• B) 15%
• C) 30%
• D) 10%
• E) 5%

Understanding of how demand curves behave in a competitive market and their impact on firm decisions.

Knowledge about the implications of changes in output on a firm's revenue in a competitive market.

Comprehension of the conditions under which firms will enter or exit the market based on profit and cost analysis.

Understanding the equalization of marginal revenue and marginal cost as a profit-maximization condition.