A small parts manufacturer has just engineered a new product for the automotive industry.In order to produce the part the company can expand existing facilities,acquire a competitor,or subcontract production.The company believes the product will either experience high market demand or low market demand.The following payoff table describes the company's decision situation.

The best decision for the manufacturer using the maximax decision criterion is to
A)expand facilities
B)acquire competitor
C)subcontract production
D)select high demand

Question

A small parts manufacturer has just engineered a new product for the automotive industry.In order to produce the part the company can expand existing facilities,acquire a competitor,or subcontract production.The company believes the product will either experience high market demand or low market demand.The following payoff table describes the company's decision situation.

The best decision for the manufacturer using the maximax decision criterion is to

The best decision for the manufacturer using the maximax decision criterion is to
A)expand facilities 
B)acquire competitor 
C)subcontract production 
D)select high demand

Quizplus · Accepted Answer

The Answer of A small parts manufacturer has just engineered a new product for the automotive industry.In order to produce the part the company can expand existing facilities,acquire a competitor,or subcontract production.The company believes the product will either experience high market demand or low market demand.The following payoff table describes the company's decision situation.

The best decision for the manufacturer using the maximax decision criterion is to
A)expand facilities 
B)acquire competitor 
C)subcontract production 
D)select high demand

A Small Parts Manufacturer Has Just Engineered a New Product