At a Certain University, Three Bookstores - the University Bookstore

question 61

Multiple Choice

At a certain university, three bookstores - the University Bookstore, the Campus Bookstore, and the Book Mart - currently serve the university community. From a survey conducted at the beginning of the fall quarter, it was found that the University Bookstore and the Campus Bookstore each had 30% of the market, whereas the Book Mart had 40% of the market. Each quarter the University Bookstore retains 80% of its customers, but loses 10% to the Campus Bookstore and 10% to the Book Mart. The Campus Bookstore retains 90% of its customers, but loses 5% to the University Bookstore and 5% to the Book Mart. The Book Mart retains 70% of its customers, but loses 10% to the University Bookstore and 20% to the Campus Bookstore. ​
What percent of the market will each store have at the beginning of the third quarter?
​

• A) University Bookstore: 27.15 %
• Campus Bookstore: 40.45 %
• Book Mart: 32.4 %
• ​
• B) University Bookstore: 27.95 %
• Campus Bookstore: 41.25 %
• Book Mart: 30.8 %
• ​
• C) University Bookstore: 30.35 %
• Campus Bookstore: 42.85 %
• Book Mart: 26.8 %
• ​
• D) University Bookstore: 28.75 %
• Campus Bookstore: 43.65 %
• Book Mart: 27.6 %
• ​
• E) University Bookstore: 29.55 %
• Campus Bookstore: 42.05 %
• Book Mart: 28.4 %
• ​

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Definitions:

Total Asset Holdings

The complete array of assets owned by an individual or entity, including cash, stocks, bonds, property, and more.

Financial Intermediary

An institution that acts as a middleman between savers and borrowers, facilitating the flow of funds in the financial system.

Goldman Sachs

A leading global investment banking, securities, and investment management firm that provides a wide range of financial services to a sizable and diversified client base.

Venture Capital

Financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential.