Use the following information to answer questions 56 to 60. Martin runs a small shop where he sells fresh milk. He buys his product for GH20 per bottle and sells it for GH25. Due to the fact the fresh milk is perishable, he sells whatever is left for GH8 per bottle at the end of each day to a cheese manufacturer. 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 about GH&4 per bottle. Martin is deciding on how much he should supply at the shop daily. His supplier 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 and use it to answer the questions that follow. 56. What will the payoff be if Supply is 40 but demand is 60 bottles A. GH4700 B. GH1,680 GH120 D. GH360 5 11 of 14 57. What will the payoff be if Supply is 80 but demand is 60 bottles A. GH260 (GH100) C GH43360 D. GH4220 58. What will the payoff be if Supply is 60 but demand is 40 bottles GH360 B. GH&120 C GH41,680 D. GH1.360 59. The highest possible profit attainable is A. 1,920 B 3,680 C. 920 D. 1,200 60. If Martin is risk averse he will prefer to supply... A. No bottles of milk B 40 bottles C. 80 bottles D. 60 bottles what will the payoff be if Supply is 80 but demand is 60 bottles A. GH260 (GH100) C. GH3360 D. GH220 58. What will the payoff be if Supply is 60 but demand is 40 bottles GH360 B. GH 120 C. GH&1,680 D. GH1.360 59. The highest possible profit attainable is A. 1,920 3,680 C. 920 D. 1,200 60. If Martin is risk averse he will prefer to supply... A. No bottles of milk 40 bottles C. 80 bottles D. 60 bottles