As the owner of a rent-a-car agency you have determined the following statistics: The gross profit is $40 per car per day rented. When there is demand for a car when none is available there is a goodwill loss of $80 and the rental is lost. Each day a car is unused costs you $5 per car. Your firm initially has 4 cars.

Question

As the owner of a rent-a-car agency you have determined the following statistics:  The gross profit is $40 per car per day rented. When there is demand for a car when none is available there is a goodwill loss of $80 and the rental is lost. Each day a car is unused costs you $5 per car. Your firm initially has 4 cars.

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The Answer of As the owner of a rent-a-car agency you have determined the following statistics:  The gross profit is $40 per car per day rented. When there is demand for a car when none is available there is a goodwill loss of $80 and the rental is lost. Each day a car is unused costs you $5 per car. Your firm initially has 4 cars.

As the Owner of a Rent-A-Car Agency You Have Determined