Mario Castillo has a part-time job selling a handmade organic burger with some success. The number of
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Question:
Mario Castillo has a part-time job selling a handmade organic burger with some success. The number of hamburgers sold in a day is a random variable. However, analysis of the last month's data shows the distribution of daily demand in the table below. Mario spends $4 on materials and labor for each burger and sells them for $7. Any unsold burger is sold for $3. Mario can make 30, 40, 50 or 60 hamburgers a day. If he wants to maximize his daily profit, he determines the number of hamburgers he must make to maximize his daily profit by simulating this system (1000 iterations).
Demand per day Probability
30 0.3
40 0.1
50 0.25
60 0,35
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
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