Which of These Statements About the One-Period Model Is Best

Multiple Choice

Which of these statements about the one-period model is best?

A) Purchasing a quantity with the highest expected payoff will result in a positive payoff regardless of the actual demand during the period.
B) The loss per unit cannot exceed the profit per unit.
C) If demand exceeds the purchased quantity then the actual payoff exceeds the expected payoff for that quantity.
D) The expected payoff for a purchase quantity is always less than the actual payoff for that quantity.