A Small Parts Manufacturer Has Just Engineered a New Product

question 5

Multiple Choice

A small parts manufacturer has just engineered a new product for the automotive industry.In order to produce the part the company can expand existing facilities,acquire a competitor,or subcontract production.The company believes the product will either experience high market demand or low market demand.The following payoff table describes the company's decision situation.

The regret that is associated with the decision to acquire competitor when demand is low is

• A)$0
• B)$525,000
• C)$1,250,000
• D)$1,275,000

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Definitions:

Deans Teaching

A situation where deans, who are senior academic officials in universities, engage directly in teaching courses, usually in their field of expertise.

Charismatic Authority

Authority based in the perception of remarkable personal qualities in a leader.

Traditional Authority

A form of leadership where power is legitimized by longstanding custom, tradition, or religious beliefs.

Legal-Rational Authority

Authority based in laws, rules, and procedures, not in the heredity or personality of any individual leader.