Martin runs a small shop where he sells fresh milk. He buys his product for $20 per bottle and sells it for $25.Due to the fact the fresh milk is perishable, he sells whatever is left for$8 per bottle at the end of each day to a cheese manufacture. Due to fierce competition in the fresh milk market, martin reckons that any customer he turns away because of a shortage of milk walks away with goodwill worth $14per bottle. Martin is deciding on how much he should supply at the shop daily. His suppliers sells to him in boxes of 20 each and so he can buy 40,60 or 80 bottles a day. Over a 250 working day year, Martins records show that he sold: 40 bottles on 50 days,60 bottles on 180 days and 80 bottles on 20 days. Prepare a Payoff table.

1.What will the payoff be if supply is 40 but demand is 60 bottles

2.what will be payoff be if supply is 80 but demand is 60 bottles

3.what will be the payoff if supply is 60 but demand is 40 bottles

4.The highest possible profit attainable is

5.If martian is risk averse he will prefer to supply

a.no bottle

b.40 bottles

c.80 bottles

d.60 bottles