The Manager of Paul's Fruit and Vegetable Store Is Considering

question 85

Multiple Choice

The manager of Paul's fruit and vegetable store is considering the purchase of a new seedless watermelon from a wholesale distributor. Since this seedless watermelon costs $4, will sell for $7, and is highly perishable, he only expects to sell between 6 and 9 of them. What is the opportunity loss for purchasing 7 watermelons when the demand is for 6 watermelons?

• A) 0
• B) 3
• C) 4
• D) 6

---

Definitions:

Debris

The remains of something that has been destroyed or broken up.

Bankrupt

A legal status in which a person or entity is unable to repay the debts it owes to creditors.

Notice

A formal announcement or warning given to someone.

Incidental Beneficiary

A third party who may benefit from a contract despite not being a direct party to it but has no legal rights to enforce the contract.