Question: In a single stage system, as the optimal order quantity increases, which of the following is true Risk increases and the reward decreases until the

In a single stage system, as the optimal order quantity increases, which of the following is true Risk increases and the reward decreases until the production quantity reaches a certain point of maximum expected profit The optimal quantity must always be the same as the average estimated demand Average profit typically increases until the production quantity reaches a certain value, after which the average profit starts decreasing Average profit typically increases as the production quantity increases until the production quantity reaches certain value, after which the average profit keeps on increasing, but at a lower rate
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