The Connotation 'Expected Value' or 'Expected Gain' from Playing Roulette

question 103

Multiple Choice

The connotation 'expected value' or 'expected gain' from playing roulette at a casino means

• A) the amount you expect to 'gain' in the long run over many plays.
• B) the amount you should expect to gain if you are lucky.
• C) the amount you expect to 'gain' on a single play.
• D) the amount you need to 'break even' over many plays.

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Definitions:

Economic Losses

Situations where total costs exceed total revenues, indicating that resources may be better utilized elsewhere.

Average Variable Cost

The total variable costs (costs that change with the level of output) of production divided by the quantity of output produced.

Short Run

A time period in which at least one input is fixed and cannot be changed by the firm, affecting its production decisions.

Purely Competitive Market

Another term for a perfectly competitive market, emphasizing its features like a large number of small firms and identical products.