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# typical microeconomics questions

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The local supermarket buys lettuce each day to ensure really fresh produce. Each morning any lettuce that is left from the previous day is sold to a dealer that resells it to farmers who use it to feed their animals. This week the supermarket can buy fresh lettuce for \$4.00 a box. The lettuce is sold for \$10 a box, and the dealer that sells the old lettuce is willing to pay \$1.50 a box. Past history says that tomorrows demand for lettuce averages 250 boxes with a standard deviation of 34 boxes. How many boxes of lettuce should the supermarket purchase tomorrow?

#### Solution Preview

This is what I would do:

1) Buy 284 boxes purchased for \$1136 and sold for \$2840 giving a maximum profit of \$1704. If I sell only 250 boxes, I would need to subtract \$8.50 (\$10 - \$1.50) for 34 boxes or \$289 for a profit of \$1415. If worse case I only sell 216, then profit would be \$1126 (\$1415 - \$289). Or...

2) ...

#### Solution Summary

Price of aging produce

\$2.19