Use the Following Data to Answer Questions 77-87

question 34

Multiple Choice

Use the following data to answer questions 77-87.
-Refer to the data on Expected Demand for Acme Widgets.Based on the Hurwicz criterion,what is the payoff for the "outsource" option if you used the coefficient of realism of 0.6?

• A)$45.20 million
• B)$16.44 million
• C)$57.00 million
• D)$33.42 million

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Definitions:

Marginal Cost

The rise in sum total expense from the production of one extra unit of a product or service.

Market Price

The current price at which a good or service can be bought or sold in a marketplace.

Average Total Cost

The cost per unit is calculated by dividing the sum of fixed and variable production costs by the total quantity of units produced.

Market Price

The current price at which an asset or service can be bought or sold in a particular marketplace.