There Are Two Gumball Machines Outside the Local Grocery Store

question 53

Multiple Choice

There are two gumball machines outside the local grocery store, one large machine and one small machine. Both machines have only yellow and orange gumballs, and each machine contains 50 percent of each color. For each coin, the large gumball machine dispenses 15 gumballs, while the small machine dispenses 5. Tim is a young genius whose interests include probability and sound decision-making. His "probability project of the day" is to get a greater percentage of either of the colors, but not an equal amount of each color. Given this, and presuming Tim has only one coin,

• A) he should use his coin in the large machine.
• B) he should use his coin in the small machine.
• C) it doesn't make a difference which machine he uses.
• D) he should wait for other people to use the machines and see what they get.

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Definitions:

Long-Run Equilibrium

A state in which all firms in a market are making zero economic profit, with no firm having an incentive to enter or exit the industry.

Allocative Efficiency

An economic state where resources are allocated in a way that maximizes the overall utility to society, ensuring that the goods and services produced match consumer preferences.

Minimization

The process or strategy of reducing or keeping to a minimum the size, amount, or degree of something, especially costs or liabilities.

Product Mix

The total range of products or services offered by a company to its customers.