SCENARIO 5-8 Two Different Designs on a New Line of Winter Jackets

question 171

Short Answer

SCENARIO 5-8
Two different designs on a new line of winter jackets for the coming winter are available for your manufacturing plants.Your profit (in thousands of dollars)will depend on the taste of the consumers when winter arrives.The probability of the three possible different tastes of the consumers and the corresponding profits are presented in the following table.

-Referring to Scenario 5-8,if you decide to choose Design A for 30% of the production lines and Design B for the remaining production lines,what is the expected profit?

---

Definitions:

Free Trade

is a policy followed by some international markets in which countries' governments do not restrict imports from, or exports to, other countries.

Domestic Jobs

Employment opportunities within a country's borders, as opposed to jobs located overseas.

Free International Trade

The exchange of goods and services between countries without the imposition of restrictions such as tariffs, quotas, or subsidies.

Producer Surplus

The difference between what producers are willing to accept for a good or service and the higher price they actually receive.