refer to the following :A firm making production plans believes there is a 30% probability the price will be $10, a 50% probability the price will be $15, and a 20% probability the price will be $20. The manager must decide whether to produce 6,000 units of output (A), 8,000 units (B) or 10,000 units (C). The following table shows 4 possible outcomes depending on the output chosen and the actual price.
-What is the expected profit if 10,000 units are produced?

Question

refer to the following :A firm making production plans believes there is a 30% probability the price will be $10, a 50% probability the price will be $15, and a 20% probability the price will be $20.  The manager must decide whether to produce 6,000 units of output (A), 8,000 units (B) or 10,000 units (C).  The following table shows 4 possible outcomes depending on the output chosen and the actual price.
-What is the expected profit if 10,000 units are produced?

Quizplus · Accepted Answer

The Answer of refer to the following :A firm making production plans believes there is a 30% probability the price will be $10, a 50% probability the price will be $15, and a 20% probability the price will be $20.  The manager must decide whether to produce 6,000 units of output (A), 8,000 units (B) or 10,000 units (C).  The following table shows 4 possible outcomes depending on the output chosen and the actual price.
-What is the expected profit if 10,000 units are produced?

Refer to the Following :A Firm Making Production Plans Believes