THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 78

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A sales representative has 425 accounts.From a random sample of 60 of these accounts,she found that the average yearly order was $1,250 with a standard deviation of $70.She also found that 28 out of 60 in the sample have placed an order in the last four weeks.
-Estimate the total amount of sales for the sales representative.

• A)$297,500
• B)$750,000
• C)$375,640
• D)$531,250

---

Definitions:

Perfect Price Discrimination

A pricing strategy where a seller charges the maximum possible price for each unit consumed that buyers are willing to pay, capturing the entire consumer surplus.

First-degree Price Discrimination

A pricing strategy where a seller charges the maximum possible price for each unit consumed, tailored to the buyer's willingness to pay.

Incremental Revenue

The additional income received from selling one more unit of a product or service.

Marginal Revenue

The additional income received from selling one more unit of a good or service; it is a critical concept in deciding the optimal quantity of goods to produce.