Suppose That Two Types of Indistinguishable Coffee Beans Are Imported

question 8

Multiple Choice

Suppose that two types of indistinguishable coffee beans are imported to the U.S.: those grown in the mountains of South America and those grown in greenhouses in Canada.Mountain grown coffee produces a better tasting coffee,but buyers cannot distinguish the beans by sight or smell.Only the importers know the source of the beans.Buyers value mountain grown beans at $10 a pound and greenhouse grown beans at $3 a pound.Assume that 70% of imported beans are mountain grown,and 30% are greenhouse grown.
For a naïve buyer,the reservation price of a pound of these coffee beans is

• A)$9.80
• B)$8.70
• C)$7.00
• D)$7.90

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Definitions:

Long-term Potentiation

A lasting increase in synaptic strength between two neurons resulting from stimulating them simultaneously, crucial for learning and memory.

Memory Study

The scientific research focused on understanding how memory works, including processes of encoding, storing, and retrieving information.

LTP

Long-Term Potentiation, a long-lasting increase in signal transmission between two neurons, considered one of the cellular mechanisms that underlies learning and memory.

Episodic Memories

Memories of autobiographical events that can be explicitly stated, including contexts, associated emotions, and the spatial-temporal sequences.