Pizza at Home is a frozen pizza company that supplies several large grocery store chains. The managers of Pizza at Home are currently negotiating a four year contract with Saucy Pizza, a manufacturer of pizza sauce. Saucy Pizza will supply a specified quantity of canned tomato sauce to Pizza at Home over a four year period; however; Pizza at Home can ends its contract with Saucy Pizza at the end

of the first, second, or third years if Saucy Pizza does not supply quality tomato sauce. The manager of the Pizza at Home should be most concerned about the quality of the tomato sauce in which year?

A) the fourth year
B) the third year
C) the second year
D) the first year


A) the fourth year

Economics

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