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Which option is correct? Suppose that demand follows N(50,10) distribution in a newsvendor problem. The Q value changes based on the values of Cu and

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Which option is correct?

Suppose that demand follows N(50,10) distribution in a newsvendor problem. The Q value changes based on the values of Cu and Co as illustrated below. What happens to Q if C upproaches infinity, while Co remains constant at 1 ? Stays constant at 64.26 Increases up until 1000 and then stays constant Increases initially but stabilizes at a certain value Never stabilizes, and it approaches infinity

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