When marginal analysis cannot easily handle a single period ...

[JGIBBSON]

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.

[nguyenhoanhat]

Answer to Question 1

correct: b

Answer to Question 2

correct: c

[JGIBBSON]

TYSM

[pratush dev]

Thanks for the timely response, appreciate it