Suppose that a perishable item costs $10 and sells for $16. Any item that is not sold by the end of the day can all be sold at $8. (a) Find MP = and ML = . The table below reveals the discrete demand for this item. (b) Complete the last column of the table. Demand P(Demand = this level) P(Demand this level) 110 0.20 120 0.15 130 0.15 140 0.15 150 0.15 160 0.10 170 0.05 180 0.05 (c) Use the marginal analysis to determine how many units should be stocked. Analysis: ________________________________________________________________________ Conclusion: _______
Suppose that a perishable item costs $10 and sells for $16. Any item that is not sold by the end of the day can all be sold at $8. (a) Find MP = and ML = . The table below reveals the discrete demand for this item. (b) Complete the last column of the table. Demand P(Demand = this level) P(Demand this level) 110 0.20 120 0.15 130 0.15 140 0.15 150 0.15 160 0.10 170 0.05 180 0.05 (c) Use the marginal analysis to determine how many units should be stocked. Analysis: ________________________________________________________________________ Conclusion: _______
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Suppose that a perishable item costs $10 and sells for $16. Any item that is not sold by the end of the day
can all be sold at $8.
(a) Find MP = and ML = .
The table below reveals the discrete
Demand P(Demand = this level) P(Demand this level)
110 0.20
120 0.15
130 0.15
140 0.15
150 0.15
160 0.10
170 0.05
180 0.05
(c) Use the marginal analysis to determine how many units should be stocked.
Analysis: ________________________________________________________________________
Conclusion: ________________________________________________________________________
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