Assume That There Are Three Shopping Locations with 500,1,000,and 3,000

question 66

Multiple Choice

Assume that there are three shopping locations with 500,1,000,and 3,000 square feet of space allocated to outdoor lighting fixtures.A group of potential customers lives 5 minutes from the first location,10 minutes from the second location,and 15 minutes from the third location.The retailer estimates the effect of travel time to be 1.The probability of consumers' shopping at location two is ________.

• A) 10 percent
• B) 15 percent
• C) 25 percent
• D) 33 percent

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Definitions:

Socially Optimal

A condition in which resources are allocated in the most efficient way from the perspective of society as a whole.

Positive Externality

A beneficial effect experienced by a third-party or the society at large, as a result of an economic activity, that isn't reflected in the cost.

Garden

A planned space, usually outdoors, set aside for the display, cultivation, and enjoyment of plants and other forms of nature.

Pizza Delivered

A service where a pizza is prepared, baked, and brought to the customer's location by a restaurant or pizzeria.