Two Percent (2%)of the Customers of a Store Buy Cigars

question 69

Multiple Choice

Two percent (2%) of the customers of a store buy cigars.Half of the customers who buy cigars buy beer.25 percent who buy beer buy cigars.Determine the probability that a customer neither buys beer nor buys cigars.

• A)0.98
• B)0.95
• C)0.75
• D)0.96
• E)0.50

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Definitions:

Bilateral Monopoly

Market with only one seller and one buyer.

Bargaining Power

The relative capacity of parties in a negotiation to exert influence on each other, often influencing the terms and conditions of agreements.

Single Buyer

A market situation where there is only one buyer, or consumer, for a particular product or service, often leading to monopsony power.

Single Seller

A market structure where there is only one provider of a particular product or service, leading to monopoly.