The manager of Paul's fruit and vegetable store is considering the purchase of a new seedless watermelon from a wholesale distributor. Because this seedless watermelon costs $4,will sell for $7,and is highly perishable,he expects only to sell between six and nine of them. If the merchant purchases eight watermelons,the minimum opportunity loss occurs when the demand is how many units?
A)6
B)7
C)8
D)9

Question

Quizplus · Accepted Answer

To find the minimum opportunity loss, we need to determine the demand that will result in the least amount of profit.

If the demand is less than 8, the store will have leftover watermelons that will go to waste.

If the demand is greater than 8, the store will not have enough watermelons to meet the demand and will potentially lose out on sales.

Therefore, purchasing 8 watermelons would be the best choice as it maximizes the potential for profit while minimizing the risk of waste or lost sales.

Thus, the answer is C) 8.

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