The Above Table Shows the Probability Distribution of Cake Sales

question 132

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 23rd cake in inventory?

• A)$8.00
• B)$4.80
• C)$3.20
• D)$8.20

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Definitions:

Secondary Sex Characteristics

Physical features that emerge during puberty, distinguishing males and females, not directly involved in reproduction.

Females

Referring to the sex of an organism or a part of an organism that produces non-motile ova (eggs) and is typically associated with a set of physiological and biological features distinct from males.

Sexual Behaviors

Actions or practices related to the pursuit of pleasure derived from or directly related to the sexual organs or the act of sex.

Frequency

The number of cycles completed by a sound wave in one second, determining the pitch of the sound; expressed in the unit called the hertz.