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A fruit seller sells oranges using a unique pricing strategy: if the number of oranges you buy is less than or equal to 100, you will have to pay Rs.10 per orange. However, the shopkeeper offers a discount such that for every additional orange above 100, a discount of Rs. (1/40) per orange is levied on the entire bunch. If the seller plans to put a box for sale having ‘n’ oranges, what should be the value of ‘n’ such that the revenue from this box is maximized?
Correct answer is '250'. Can you explain this answer?
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A fruit seller sells oranges using a unique pricing strategy: if the ...
Understanding the Pricing Strategy


The fruit seller's pricing strategy is as follows:
- If the number of oranges bought is less than or equal to 100, the price per orange is fixed at Rs.10.
- For every additional orange above 100, a discount of Rs. (1/40) per orange is applied to the entire bunch.

Calculating Revenue for Different Values of 'n'


To find the value of 'n' that maximizes revenue, we need to calculate the revenue for different values of 'n' and identify the maximum revenue.

Let's calculate the revenue for 'n' oranges using the given pricing strategy:

If 'n' is less than or equal to 100:
- The price per orange is Rs.10.
- Therefore, the revenue for 'n' oranges is 10 * n.

If 'n' is greater than 100:
- The price per orange is Rs.10 minus the discount of (1/40) per orange.
- The total discount for the additional oranges is (n - 100) * (1/40).
- Therefore, the price per orange for the additional oranges is Rs.10 - (1/40).
- The revenue for 'n' oranges is (10 * 100) + [(n - 100) * (10 - (1/40))].

Finding the Maximum Revenue


To find the value of 'n' that maximizes revenue, we need to compare the revenue for different values of 'n' and identify the maximum revenue.

Let's calculate the revenue for different values of 'n' and find the maximum:

For n = 100:
- Revenue = 10 * 100 = Rs.1000.

For n = 101:
- Revenue = (10 * 100) + [(101 - 100) * (10 - (1/40))] = 1000 + (1 * 9.975) = Rs.1009.975.

For n = 102:
- Revenue = (10 * 100) + [(102 - 100) * (10 - (1/40))] = 1000 + (2 * 9.95) = Rs.1019.9.

Similarly, we can calculate the revenue for other values of 'n'.

Identifying the Maximum Revenue


By calculating the revenue for different values of 'n', we can observe that the revenue initially increases as 'n' increases. However, after a certain point, the revenue starts decreasing. We need to find the value of 'n' where the revenue is maximum.

Based on the calculations, we can observe that the maximum revenue is obtained when 'n' is 250, which is Rs.2475.

Therefore, the value of 'n' that maximizes revenue is 250.
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Community Answer
A fruit seller sells oranges using a unique pricing strategy: if the ...
Revenue from the sale of 100 oranges = 100 x 10 = 1000
⇒ Let the revenue be maximum for kk additional oranges sold.
Hence the new revenue would be
⇒ The value will be maximum at the point where this function is differentiated and then equated to zero.
On solving, we get k = 150k = 150
Thus, the value of the function would be maximum at k = 150
Therefore, the value of ‘n’ for which the revenue would be maximum is given by
(100 + 150) = 250
Hence, the required answer is 250.
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Each of the questions below contains a paragraph followed by alternative summaries. Choose the option that best captures the essence of the text.Strategy is about choice, which affects outcomes. Organizationscan often do well for periods of time in conditions of relative stability, low environmental turbulence and little competition for resources. Virtually none of these conditions prevail in the modern world for great lengths of time for any organization or sector, public or private. Hence, the rationale for strategic management. The nature of the strategy adopted and implemented emerges from a combination of the structure of the organization, the type of resources available and the nature of the coupling it has with the environment and the strategic objective being pursued. Strategy is adaptable by nature rather than a rigid set of instructions. In some situations it takes the nature of emergent strategy. The simplest explanation of this is the analogy of a sports scenario. If a football team were to organize a plan in which the ball is passed in a particular sequence between specifically positioned players, their success would be dependent on each of those players both being present at the exact location, and remembering exactly when, from whom and to whom the ball is to be passed; moreover that no interruption to the sequence occurs. By comparison, if the team were to simplify this plan to a strategy where the ball is passed in the pattern alone, between any of the team, and at any area on the field, then their vulnerability to variables is greatly reduced, and the opportunity to operate in that manner occurs far more often. This manner is a strategy.1. Strategic management is required for organizations to succeed in a rapidly changing world where there are several parameters affecting success. Strategy is adaptable in nature rather than being rigid.2. Every organization in every sector, whether public or private needs a strategy to overcome situations that arise out of changes in the environment. It is not however easy to identify a common strategy for all organizations.3. The need for strategic management arises because of the variability of the parameters affecting organizations and sectors. The nature of strategy depends on structure, resources and the environment. Strategy is adaptable rather than a rigid set of instructions.4. Strategy differs from one organization to another depending upon the structure of the organization, its goals and relation with the environment. Without a strategy it is not possible to survive in an ever-changing world. Correct answer is '3'. Can you explain this answer?

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A fruit seller sells oranges using a unique pricing strategy: if the number of oranges you buy is less than or equal to 100, you will have to pay Rs.10 per orange. However, the shopkeeper offers a discount such that for every additional orange above 100, a discount of Rs. (1/40) per orange is levied on the entire bunch. If the seller plans to put a box for sale having ‘n’ oranges, what should be the value of ‘n’ such that the revenue from this box is maximized?Correct answer is '250'. Can you explain this answer?
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A fruit seller sells oranges using a unique pricing strategy: if the number of oranges you buy is less than or equal to 100, you will have to pay Rs.10 per orange. However, the shopkeeper offers a discount such that for every additional orange above 100, a discount of Rs. (1/40) per orange is levied on the entire bunch. If the seller plans to put a box for sale having ‘n’ oranges, what should be the value of ‘n’ such that the revenue from this box is maximized?Correct answer is '250'. Can you explain this answer? for CAT 2025 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about A fruit seller sells oranges using a unique pricing strategy: if the number of oranges you buy is less than or equal to 100, you will have to pay Rs.10 per orange. However, the shopkeeper offers a discount such that for every additional orange above 100, a discount of Rs. (1/40) per orange is levied on the entire bunch. If the seller plans to put a box for sale having ‘n’ oranges, what should be the value of ‘n’ such that the revenue from this box is maximized?Correct answer is '250'. Can you explain this answer? covers all topics & solutions for CAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A fruit seller sells oranges using a unique pricing strategy: if the number of oranges you buy is less than or equal to 100, you will have to pay Rs.10 per orange. However, the shopkeeper offers a discount such that for every additional orange above 100, a discount of Rs. (1/40) per orange is levied on the entire bunch. If the seller plans to put a box for sale having ‘n’ oranges, what should be the value of ‘n’ such that the revenue from this box is maximized?Correct answer is '250'. Can you explain this answer?.
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