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

---

Definitions:

Flat Canvas

Usually refers to a smooth, flat surface used by artists for painting.

Linear Perspective

A depth cue that parallel lines converge in the distance at a vanishing point on the horizon line.

Distance Cue

Visual information that helps perceive the distance or depth of objects in one's environment, crucial for spatial awareness.

Parallel Rows

Lines or sequences of objects placed side by side, keeping the same distance continuously between them.