In a particular setting where the newsvendor model applies, demand is Normally distributed and the underage cost Cu can be calculated at 10, while the overage cost can be calculated as 5. This means that

Select one: a. the expected profit-maximizing order quantity is more than expected demand.

b. the expected profit-maximizing order quantity is less than expected demand.

c. the expected profit-maximizing order quantity is exactly equal to expected demand.

d. The critical ratio will be 0.5000.