Hamburgers are on the menu tomorrow at a school cafeteria and the manager needs to decide how many to have ready for the lunch hour. Each hamburger costs the school $1.85 and is sold for $3.50. Leftover hamburgers have no monetary value. The manager expects demand tomorrow to be 100, 150, 200, or 250 hamburgers and would like to prepare one of these four quantities for lunchtime. If the manager uses the maximax criterion, how many hamburgers will be prepared?
A)250
B)200
C)150
D)100

Question

Quizplus · Accepted Answer

The maximax criterion involves selecting the option with the maximum possible payoff. Preparing 250 hamburgers represents the highest potential revenue, thus aligning with the maximax approach.

Hamburgers Are on the Menu Tomorrow at a School Cafeteria