1. Double Marginalization refers to the case where

   		Two competitors try to introduce a similar product in the same market.
   		One manufacturer introduces two products in the same market.
   		The supplier and the retailer separately try to make a profit out of the same product.
   		None of the above.

9.848 points

QUESTION 28

1. Assume that youre facing a newsvendor problem with normally distributed demand with mean D and standard deviation . The cost to order a unit is c and the revenue from each sold unit is p. Unsold items will be salvaged at no cost/revenue.

   What happens to the optimal order quantity when the price p increases?

   		The information is not sufficient to answer this question.
   		It decreases.
   		It increases.
   		It depends.

9.848 points

QUESTION 29

1. Assume that youre facing a newsvendor problem with normally distributed demand with mean D and standard deviation . The cost to order a unit is c and the revenue from each sold unit is p. Unsold items will be salvaged at no cost/revenue.

   What happens to the optimal order quantity when decreases?

   		It increases.
   		It decreases.
   		The optimal order quantity does not depend on .
   		The information is not sufficient to answer this question.