If he uses the maximin criterion, which kind of dwellings will he decide to build?
A)single family
B)apartments
C)condominiums
D)either single family or apartments
E)either apartments or condos

Question

Quizplus · Accepted Answer

The maximin criterion states that you should choose the option that maximizes the minimum gain. In the case of the housing market, this means that the developer should choose the type of dwelling that has the highest minimum profit. Single-family homes have a higher minimum profit potential than apartments or condos because they can be sold to one individual or family for a higher price. Therefore, the developer should choose to build single-family homes. However, if for some reason the minimum profit potential for single-family homes is lower than that of apartments, then the developer should choose to build apartments. Hence, the best choice here is either single-family homes or apartments.

If He Uses the Maximin Criterion, Which Kind of Dwellings