In Planning a Sidewalk Cafe, It Is Estimated That If $\frac { 1 } { 4 }$

question 33

Multiple Choice

In planning a sidewalk cafe, it is estimated that if there are 28 tables, the daily profit will be $8 per table and that, if the number of tables is increased by x, the profit per table will be reduced by $\frac { 1 } { 4 }$ x dollars (due to overcrowding) . How many tables should be present in order to maximize the profit?

• A) 20
• B) 30
• C) 10
• D) can't do the problem without cost information

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Definitions:

Beta

A measure of the volatility or risk of a security or a portfolio in comparison to the market as a whole.

Diversifiable Risk

A type of investment risk that can be reduced or eliminated through diversification, including risks specific to an industry, company, or region.

Unsystematic Risk

The risk that is specific to a company or industry, which can be reduced through diversification.

Individual Investor

An individual investor is a non-professional private investor who buys and sells securities for their personal account.