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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Definitions:

Modeling Clay

A pliable material used in arts and crafts, which can be shaped and molded into various forms, often used for creating sculptures.

Conservation

A concept in cognitive development where a child understands that changing the form of a substance or object does not change its amount, overall volume, or mass.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or touched.

Reversibility

In cognitive psychology, the ability to recognize that actions can be reversed and objects can be returned to their original state.