A Local Electronics Retailer Recently Conducted a Study on Purchasers

question 71

Multiple Choice

A local electronics retailer recently conducted a study on purchasers of large screen televisions.The study recorded the type of television and the credit account balance of the customer at the time of purchase.They obtained the following results. $\begin{array} { | l | c | c | c | c | } \hline \begin{array} { l } \text { Credit } \\\text { Balance }\end{array} & \text { Standard TV } & \text { LCD } & \text { Plasma } & \text { Projection } \\\hline \text { Under \$200 } & 10 & 16 & 40 & 5 \\\hline \$ 200 - \$ 800 & 8 & 12 & 24 & 15 \\\hline \text { Over \$800 } & 16 & 12 & 16 & 30 \\\hline \text { Total } & 34 & 40 & 80 & 50 \\\hline\end{array}$
What percentage of the customers had the highest credit balances and purchased an LCD television?

• A)36.30
• B)5.90
• C)19.60
• D)56.30
• E)16.20

---

Definitions:

Economic Profits

The variance between total income and total outlays of a business, taking into account both clearly stated and implied expenses.

Competitive Price-Searcher

A type of market structure where firms set their prices based on the competition and search for the best price to maximize their profits.

Long-Run Economic Profits

Profits that persist over time after all costs, including opportunity costs, are taken into account, indicating a competitive advantage.

Industry Equilibrium

A state where industry supply equals demand, leading to stability in prices and quantities produced and consumed.