If the Probability of Something Happening Is

question 8

Multiple Choice

If the probability of something happening is .001, it will happen

• A) 1 in 10 times
• B) 1 in 100 times
• C) 1 in 1,000 times
• D) 1 in 10,000 times

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Definitions:

Profit Maximization

A method used by firms to determine the best output and price levels in order to achieve the highest profit.

Marginal Revenue

The additional revenue that a company receives from selling one more unit of a good or service.

Output Effect

The impact on total production and revenue when a firm alters the quantity of output produced, holding other factors constant.

Monopolist's Profit

The excess earnings a monopolist achieves due to the lack of competition, allowing for pricing above marginal cost.