ABC Operates a Factory in the United Kingdom

question 59

Multiple Choice

ABC operates a factory in the United Kingdom.Because the company's existing factory doesn't have the capacity to meet the future demands,it is considering various options.Consider the payoff matrix that shows the payoff for each combination of decision and state of nature.Determine the best alternative,given that the demand will be high.

• A)Expand current facility
• B)Build small factory
• C)Build large factory
• D)Determine a new alternative

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Definitions:

Efficient Markets

Markets in which all available information is fully reflected in asset prices, making it impossible to consistently achieve higher returns than the overall market.

Opportunity Cost

The cost of foregone alternatives, representing the benefits that could have been received by choosing the next best alternative.

Retail Value

The price at which a product is sold to the end consumer, typically including markups from wholesale or manufacturing costs.

Barbie Doll

A fashion doll manufactured by the American toy-company Mattel, Inc. and launched in March 1959.