Suppose you plan on eating 50 potato chips. as you start consuming potato chips, your marginal utility is very high, but it begins to fall slowly until you’ve eaten 10 chips. after you have eaten 10 chips, your marginal utility decreases even faster with each additional chip. marginal utility continues to decline until you’ve eaten 49 chips. the fiftieth chip does not give you any additional utility. after 50 chips, your mouth gets so salty that it is unpleasant to eat any more, so marginal utility is actually negative for those chips. how many chips should you eat in order to maximize your total utility?

a.1
b. 10
c. 49
d. 51

Jimmy's delicatessen sells large tins of tom tucker's toffee. the deli uses a periodic review system, checking inventory levels every 88 days, at which time an order is placed for more tins. order lead time is 22 days. daily demand is a constant 1515 tins, so average demand during the reorder period and order lead time (1010 days) is 150150 tins. draw a sawtooth diagram. assume that the beginning inventory level is equal to the restocking level and the desired service level is 99.9%. what is the safety stock level? (hint: look at the formula for calculating restocking level.) what is the average inventory level? the safety stock level is average inventory level is __chart: time (10,20,30), tins (0,150) lines touching both axisthe safety stock level is 0 tinsthe average inventory level is 75 tins