The Unit of Sale for a Retailer Is ________

question 12

Multiple Choice

The unit of sale for a retailer is ________.

• A) a dozen of an item
• B) one item
• C) one order
• D) one hour of time

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Definitions:

Von Neumann-Morgenstern Utility Function

A utility function that assumes individuals can rank their preferences under uncertainty, used in expected utility theory to describe choices.

Insurance

A financial product that provides protection against financial loss or harm, in exchange for the payment of a premium.

Probability

A numeric representation ranging from 0 to 1 that describes the chance of an event taking place, where 0 is an event that won't occur and 1 is an event that is guaranteed.

Utility Function

A mathematical representation in economics that captures how consumers allocate their expenditure to maximize satisfaction or utility from goods and services.