The East Los Angeles Interchange Is the Busiest Freeway Interchange

question 97

Essay

The East Los Angeles Interchange is the busiest freeway interchange in the world.In 2008,an average of 550,000 cars passed through the intersection per day with a standard deviation of 100,000.What is the probability more than 620,000 use the interchange on a random day? Assume the number of cars on the interchange is approximately normally distributed.

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Definitions:

Diminishing Marginal Product

A principle stating that, holding all else constant, an increase in the quantity of one input will eventually lead to lower additional output per unit of input.

Marginal Product

The extra production that comes from using an additional unit of input, while keeping other inputs unchanged.

Total Cost Curve

A graphical representation of the total cost of production, which shows how total cost changes as the quantity of output changes.

Typical Firm

A representative entity in an industry or market that reflects the common attributes of businesses within that context.