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The J&B Card Shop sells calendars featuring a different colonial picture for each month. The once-a-year order for each year;s calendar arrives in September. From past experience, the September-to-July demand for the calendears can be approximated by a normal distrubution with μ=300 and standard deviation =20. The calendars cost $6.50 each, and J&B sells them for $15 each.
a) Suppose that J&B throws out all unsold calendars at the end of July. Using marginal economic analysis, how many calendars should be ordered?
b) If J&B sells any surplus calendars for $1 at the end of July and can sell all of them at this price, how many calendars should be ordered?
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