Bottomline Ink, a Forms Management Company, fiLls 100 Orders a Day

question 4

Multiple Choice

Bottomline Ink, a forms management company, fills 100 orders a day with a 2% error rate in the
Completed orders. Assume this to be a binomial distribution. What is the mean for this distribution?

• A) 0.02
• B) 1.4
• C) 2
• D) There is no mean for this type of distribution.

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Definitions:

Marginal Cost

The boost in aggregate costs that comes from generating one extra unit of a product or service.

Non-collusive Oligopolist

An oligopolistic market structure participant that competes without agreements or cooperation with rivals to influence market prices or output.

Marginal Revenue Curve

Represents the change in total revenue from selling one additional unit of a product or service.

Equilibrium Price

Equilibrium Price is the price at which the quantity of a good or service demanded equals the quantity supplied, resulting in market balance.