Assume that you own and operate a business. Your production this year was based on prior years'

experience. You have been left, however, with 100,000 unsold units on hand. You have been selling your

product at $5 each and expected the same price for these 100,000 units. You have exhausted all avenues

you can think of for disposing of your excess product. You do not have the storage capacity for keeping

these units in inventory while you continue production.

This morning a giant retail organization contacted you urgently seeking the type of product you produce

to fill deficits in their supply. They offer to pay you $3 per unit.