Instruction 5-2 a Certain Type of New Business Succeeds 60% of the of the Time.Suppose

question 61

Short Answer

Instruction 5-2
A certain type of new business succeeds 60% of the time.Suppose that 3 such businesses open (where they do not compete with each other,so it is reasonable to believe that their relative successes would be independent).
-Referring to Instruction 5-2,the probability that all 3 businesses fail is ________.

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Definitions:

Inefficiency

The lack of optimal use of resources, resulting in lost potential output or increased costs.

Monopoly Pricing

Pricing strategies employed by a monopoly, where a single firm controls the entire market for a good or service and can influence prices.

Deadweight Loss

Economic inefficiency resulting when the market equilibrium for a good or a service is not achieved.

Social Cost

The total cost to society, including both private costs and any external costs, from producing or consuming a good or service.