Author Question: When marginal analysis cannot easily handle a single period model, we express the decision maker's ... (Read 66 times)

JGIBBSON · **on:** Aug 1, 2018

When marginal analysis cannot easily handle a single period model, we express the decision maker's objective as f(q) and find q such that:
a.f(q+1) f(q) = 0.
b.f'(q)=0.
c.f''(q)=0.
d.f(q) = 0.

Question 2

In the news vendor problem c_u is the ________.
a.underuse cost.
b.unemployment cost.
c.understocking cost.
d.underorder cost.