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The Above Table Shows the Probability Distribution of Cake Sales

Question 69

Multiple Choice

The above table shows the probability distribution of cake sales at Busy Betty's Bakery. -Refer to the table above. Busy Betty sells her cakes for $20 each and her constant marginal cost to produce each cake is $12, which is equal to her (constant) average total cost. What is her expected marginal benefit from holding the 23rd cake in inventory? A) $8.00 B) $4.80 C) $3.20 D) $8.20 The above table shows the probability distribution of cake sales at Busy Betty's Bakery.
-Refer to the table above. Busy Betty sells her cakes for $20 each and her constant marginal cost to produce each cake is $12, which is equal to her (constant) average total cost. What is her expected marginal benefit from holding the 23rd cake in inventory?


A) $8.00
B) $4.80
C) $3.20
D) $8.20

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