If a Vendor Has Correctly Used Marginal Analysis to Select

question 78

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

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