The National Sales Manager for "I Colored This" (ICT)T-Shirts Provides

question 62

Multiple Choice

The national sales manager for "I colored this" (ICT) T-shirts provides all salespersons with the payoff table shown next,giving the estimated profit when a retailer purchases from one to four dozen T-shirts. The probability of demand for each state of nature is also shown. How many dozen ICT T-shirts should be purchased to yield the highest potential payoff?

• A)1
• B)2
• C)3

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Definitions:

Long Run

In economics, a period of time in which all factors of production and costs are variable, allowing all inputs to be adjusted.

Farm Employment

Refers to labor and jobs associated with agriculture, including planting, maintenance, and harvesting of crops.

Declining Industry

An industry experiencing a long-term drop in output, sales, or employment.