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

Question

Quizplus · Accepted Answer

The maximum opportunity loss occurs when the demand is 9 units because the manager would miss out on selling 2 additional watermelons, resulting in a loss of potential profit from those sales.

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