Two Professors at a Nearby University Want to Co-Author a New

question 32

Multiple Choice

Two professors at a nearby university want to co-author a new textbook in either economics or statistics.They feel that if they write an economics book they have a 50% chance of placing it with a major publisher where it should ultimately sell about 40,000 copies.If they can't get a major publisher to take it,then they feel they have an 80% chance of placing it with a smaller publisher,with sales of 30,000 copies.On the other hand if they write a statistics book,they feel they have a 40% chance of placing it with a major publisher,and it should result in ultimate sales of about 50,000 copies.If they can't get a major publisher to take it,they feel they have a 50% chance of placing it with a smaller publisher,with ultimate sales of 35,000 copies.
-What is the probability that the economics book would wind up being placed with a smaller publisher?

• A)0 8
• B)0 5
• C)0 4
• D)0 2
• E)0 1

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Definitions:

Autarky

An economic system or policy of self-sufficiency where a country attempts to produce everything it needs without engaging in international trade.

Self-Sufficiency

The ability of an individual, community, or nation to provide for all of its needs without external assistance.

Economic Interaction

Economic interaction involves the exchange of goods, services, and resources among individuals, businesses, and governments within and across economies.

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than other competitors.