If a Vendor Has Correctly Used Marginal Analysis to Select

question 9

Multiple Choice

If a vendor has correctly used marginal analysis to select their stock levels for the day (as in the newsperson problem) , and the profit resulting from the last unit being sold (C_u) is $120 and the loss resulting from that unit if it is not sold (C_o) is $360, which of the following is the probability of the last unit being sold?

• A) Greater than 0.90
• B) Greater than 0.85
• C) Greater than 0.75
• D) Greater than 0.25
• E) None of these

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Definitions:

Incremental Theorist

An Incremental Theorist believes that personal qualities, such as intelligence and ability, can be developed over time through effort and perseverance.

Entity Theorist

An individual who believes that personal qualities such as intelligence or talent are fixed traits and not significantly changeable over time.

Immediate Success

The rapid achievement of a goal or attainment of positive results shortly after efforts are made.

Prosocial Manner

Behaving in a way that is positive, helpful, and intended to promote social acceptance and friendship.