24 he manager of Pauls fruit and vegetable store is consider

24.

he manager of Paul\'s fruit and vegetable store is considering the purchase of a new seedless watermelon from a wholesale distributor. Since this seedless watermelon costs $4, will sell for $7, and is highly perishable, he only expects to sell between six and nine of them. What is the opportunity loss for purchasing nine watermelons when the demand is for seven watermelons?

8

4

0

12

Solution

The opportunity loss will be the amount spend on extra watermelons which are not in    line wiith demand. Thus opprtunity lost will be 4*2 = $8