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Question 1 0 1 ptsA newsvendor sells all of her newspapers toward the end of most days because she always orders fewer copies of newspapers

Question 101 ptsA newsvendor sells all of her newspapers toward the end of most days because she always orders fewer copies of newspapers than the average daily demand. Assume that this is a rational choice rather than a mistake. Which of the following is the correct explanation for this strategy? The cost of overage is zero. The cost of overage must be greater than the cost of underage. The cost of underage must be high. The cost of underage must be greater than the cost of overage.

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