Decision Trees Show the Profit Outcomes for the Plans for Two

question 17

Multiple Choice

Decision trees show the profit outcomes for the plans for two doughnut stores in two different locations in a strong and a weak economy for the future.If the investor interested in building a store is optimistic, in which location should she build?

• A)She should build Store 1, because it has a lower minimum profit.
• B)She should build Store 2, because it has a greater maximum profit.
• C)She should build Store 1, because it has a greater maximum profit.
• D)She should build Store 2, because it has a greater minimum profit.

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Definitions:

Rights of Individuals

Legal, social, or ethical principles of freedom or entitlement; the fundamental normative rules about what is allowed or owed to people.

Markets

Places or structures where buyers and sellers interact to exchange goods, services, or information under specific economic conditions.

Economic Efficiency

A situation where resources are allocated in a way that maximizes the production of goods and services at the lowest cost to society.

Pollution

The introduction of contaminants into the natural environment, causing adverse change.