The Above Table Shows the Probability Distribution of Cake Sales

question 145

Multiple Choice

The above table shows the probability distribution of cake sales at Busy Betty's Bakery.
-Refer to the table above. Busy Betty sells her cakes for $20 each and her constant marginal cost to produce each cake is $12, which is equal to her (constant) average total cost. What is her expected marginal benefit from holding the 20th cake in inventory?

• A)$8.00
• B)$7.80
• C)$7.20
• D)$12.80

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Definitions:

Corporal Punishment

Use of physical force with the intention of causing pain but not injury so as to correct or control behavior.

Power Assertion

Disciplinary strategy designed to discourage undesirable behavior through physical or verbal enforcement of parental control.

Discipline

A field of study or branch of knowledge; also refers to the practice of training to improve strength or self-control.

Authoritarian

Characterized by strict obedience to authority at the expense of personal freedom; often related to governance or parenting styles.