If It Costs View Your World, a High- End Window

question 57

Multiple Choice

If it costs View Your World, a high- end window manufacturer, $26 per window to install a higher quality glass in its windows and consumers will pay an additional $15 per window for the improvement, which of the following is true?

• A)View Your World should install the higher quality glass because the marginal revenue from the quality enhancement exceeds the marginal cost.
• B)View Your World should install the higher quality glass because the marginal revenue from the quality enhancement is less than the marginal cost.
• C)View Your World should not install the higher quality glass because the marginal revenue from the quality enhancement is less than the marginal cost.
• D)View Your World should not install the higher quality glass because the marginal revenue from the quality enhancement exceeds the marginal cost.

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Definitions:

Proportion

A part, share, or number considered in comparative relation to a whole; a ratio.

Inference

The process of drawing conclusions about a population based on data from a sample.

Statistical Inference

The process of using data analysis to deduce properties of an underlying probability distribution.

Estimate

An approximation or educated guess of a certain quantity based on available data.