Consider the following two economic characteristics with two possible outcomes each: employment (increase, decrease) and economic trend (positive, negative). Let the probability of a decreasing employment be 0.6 and the probability of a positive economic trend 0.5. Further, assume that the probability of a decreasing employment given a negative economic trend is 0.7.
Determine the probability of a positive economic trend given an increasing employment. Are employment and economic trend independent?© BrainMass Inc. brainmass.com October 10, 2019, 1:05 am ad1c9bdddf
A competitive firm estimates its average variable cost function to be .
The firm's total fixed cost is $3,500.
a. The marginal cost function associated with this average variable cost function is
a. The firm's total cost, TC = TFC +TVC
Or, TC = TFC + AVC.Q
Or, TC =3500 + (125 -0.21Q+ 0.0007Q2).Q
MC = d(TC)/dQ = 125 - 0.42Q + 0.0021Q2
b. AVC reaches its minimum at __150____ units of output. Minimum AVC is ___109.25______.
d(AVC)/dQ = o when AVC is at minimum
This solution helps with a probability problem regarding employment and economic trends.