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Demand for Local Newspapers in King County During Weekdays Is

Question 126

Essay

Demand for local newspapers in King County during weekdays is normally distributed with a mean of 500 and standard deviation of 100.The marginal loss per paper is $0.10 and marginal profit is $0.40.How many newspapers should the local publisher produce each day?

Correct Answer:

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P = ML/(ML + MP)= 0.20.Z = 0.8...

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