Business, 06.11.2019 02:31 AvantiA

If a vendor has correctly used marginal analysis to select their stock levels for the day (as in the newsperson problem), and the profit resulting from the last unit being sold (cu) is $0.90 and the loss resulting from that unit if it is not sold (co) is $0.50, which of the following is the probability of the last unit being sold?

(a) greater than 0.357
(b) greater than 0.400
(c) greater than 0.556
(d) greater than 0.678
(e) none of the above

Answers: 2

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If a vendor has correctly used marginal analysis to select their stock levels for the day (as in the...