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

---

Definitions:

Demand Functions

Mathematical representations that describe how the quantity demanded of a good or service changes in response to price changes and other factors.

Income

the total amount of money received by an individual or group over a specified period, often derived from work, property, or investments.

Homothetic Preferences

A situation in consumer theory where preference ratios are consistent across different income levels or price changes.

Utility Function

Mathematical representation of a consumer's preference ranking for a set of goods and services.