Sara buys fresh salmon for $5 per pound from Pike Place Market on Saturday morning and sells them for $12 per pound at a local fish market Any salmon not sold that day needs to be disposed of properly. The disposal cost is $1 per pound. Kelly believes that demand for salmon is uniformly distributed between 120 to 190 pounds. How many pounds of salmon should she order each day? a) What is the cost of underestimating demand for salmon? $ b) What is the cost of overestimating demand for salmon? s How many pounds should she order on Saturday morning? (round your response to two decimal places) round your response to two decimal places) (round your response to the nearest whole number)

Sara buys fresh salmon for $5 per pound from Pike Place Market on Saturday morning and sells them for $12 per pound at a local fish market Any salmon not sold that day needs to be disposed of properly. The disposal cost is $1 per pound. Kelly believes that demand for salmon is uniformly distributed between 120 to 190 pounds. How many pounds of salmon should she order each day? a) What is the cost of underestimating demand for salmon? $ b) What is the cost of overestimating demand for salmon? s How many pounds should she order on Saturday morning? (round your response to two decimal places) round your response to two decimal places) (round your response to the nearest whole number)

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter6: Simple Pricing

Section: Chapter Questions

Problem 9MC

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