A Perishable Product Is Purchased by a Retailer for $5

question 33

Multiple Choice

A perishable product is purchased by a retailer for $5 and is sold for $7.If an item is not sold during the day,the retailer loses $5.Past history has shown that there is a 30% chance of selling 28 of these products in a day,a 28% chance of selling 29 of them in a day,a 25% chance of selling 30 of them in a day and a 17% chance of selling 31 of them in a day.If you order 30 of the items per day,what is your expected daily profit?

• A)$48.04
• B)$23.41
• C)$18.14
• D)‒$13.43

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Definitions:

Population Growth

The increase in the number of individuals in a population, often measured as a percentage of the total population.

Underemployment

A situation where individuals are working fewer hours than they prefer or are employed in positions that do not utilize their skills or education level fully.

Production Possibilities Curve

A graphical representation that shows the maximum quantity of one good that can be produced for each possible quantity of another good, given the available resources and technology.

Capital Equipment

Long-term, tangible assets acquired or used to produce goods and services, such as machinery, buildings, and vehicles.