If a Vendor Has Correctly Used Marginal Analysis to Select

question 12

Multiple Choice

If a vendor has correctly used marginal analysis to select its stock levels for the day (as in the newsperson problem in the text) , and if the profit resulting from the last unit being sold (C_u) is $0.90 and the loss resulting from that unit if it is not sold (C_o) is $0.50, which of the following is the probability of the last unit being sold?

• A) Greater than 0.357
• B) Greater than 0.400
• C) Greater than 0.556
• D) Greater than 0.678
• E) None of these choices are correct

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Definitions:

Acidity

A chemical property that quantifies the amount of acid in a solution, often measured by pH levels.

Prostate Gland

A gland in the male reproductive system that produces a fluid that mixes with sperm to form semen.

Urethra

A tube that connects the urinary bladder to the urinary meatus for the removal of fluids from the body.

Renin

An enzyme secreted by the kidneys that plays a key role in regulating blood pressure by converting angiotensinogen to angiotensin.