The owner of tasty cookies needs to decide whether to lease, Operation Management

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The owner of tasty cookies needs to decide whether to lease

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The owner of Tasty Cookies needs to decide whether to lease a small, medium, or large new retail outlet. She estimated that monthly profits will vary with demand for her cookies as follows:

Demand

Size of Outlet Low High

Small $1,000 1,000

Medium 500 2,500

Large 0 3,000

If she uses the maximin criterion, what size outlet will she decide to lease?

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