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

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Definitions:

Liquidates

the process of converting assets into cash or other liquid assets, often associated with closing a business or settling debts.

Fraudulent Misrepresentation

A false statement knowingly made to induce another party to enter into a contract, resulting in harm.

Coder

An individual who writes code or develops software by translating algorithms and technical specifications into computer language.

Mistake

An erroneous belief, at contracting, that certain facts are true. It can be invoked as grounds to invalidate the agreement.