Question: A fish shop can purchase fresh fish at $18 per crate each morning from a wholesale fish market. During the day, the shop sell crates
A fish shop can purchase fresh fish at $18 per crate each morning from a wholesale fish market. During the day, the shop sell crates of fish to local restaurants for $120 each. Coupled with the perishable nature of the product, the quality standard requires the shop to dispose of each unsold crate at the end of the day. The disposal costs $2 per crate. The shop does not know how many crates customers will order each day. To address this problem, the shop have collected the several day's worth of demand data as below.

EDIT: Demand: 0, 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15 Frequency: 0, 0, 0, 1, 3, 2, 5, 1, 6, 7, 6, 8, 5, 4, 1, 3,
What is the marginal cost (MC) of stocking an additional crate?
Demand at a fish shop Demand 0 1 Frequency 0 0 2 3 4 6 7 15 NO NU 5 2 8 6 9 7 10 11 6 8 12 13 5 4 14 1 1 3 5 1 3Step by Step Solution
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