Consider the Following Passage

question 23

Multiple Choice

Consider the following passage:
Julia sells exotic birds. She has placed four orders with wholesale bird supplier Papagayo Co., and all of them have been filled with healthy birds. Lately, however, some wholesale competitors have been trying to get her to order from them. But, when it's time to make the next order, she decides she's better off with Papagayo because she's pretty sure she'll get healthy birds. (Do not assume that you know anything about birds or the bird business.)
Given the original circumstances, which of these conclusions would produce the strongest argument?

• A)Most of the birds in the new shipment will be healthy.
• B)All the birds in the new shipment will be healthy.
• C)None of the birds in the new shipment will be healthy.
• D)Some of the birds in the new shipment will be able to swear in two languages.

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Definitions:

Profit-maximizing

The method a company uses to identify the pricing and production volume that maximizes profit.

Marginal Product

The additional output that is produced by using one more unit of a factor of production, all else held constant.

Elasticity

Elasticity measures the responsiveness of the quantity demanded or supplied of a good or service to a change in its price or other factors like income.

Resource Demand

The demand for resources (labor, capital, land) that are used to produce goods and services.