Fifty Percent of the People That Get Mail-Order Catalogs Order

question 81

Multiple Choice

Fifty percent of the people that get mail-order catalogs order something. Find the probability that exactly two of 10 people getting these catalogs will order something.

• A)0.044
• B)0.200
• C)0.001
• D)11.250

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Definitions:

Marginal Revenue

The increase in revenue achieved by selling one additional unit of a product or service.

Economic Profits

Profits calculated by subtracting both explicit and implicit costs from total revenues, often representing the additional benefit over the next best alternative.

Industry Output

The total production or supply of goods and services produced within a specified industry over a given period of time.

Economic Losses

Occur when a company's total costs exceed its total revenues, resulting in a negative profit.