A Company Producing Apps for a Social Networking Site Is

question 87

Essay

A company producing apps for a social networking site is deciding which path to pursue.The first is to create an app that has universal appeal but faces a crowded market.This app,A,would have sales of 100,000 copies at $1 each under ideal conditions,but under tough conditions would have sales of only 60,000 copies at $.80 each.The other app,B,would have sales of 500,000 units at $.50 each under ideal conditions but sales would be reduced to 10,000 units at $.50 each under tough conditions.If ideal and rough conditions occur with the same frequency,which app should the company produce? Note: both apps cost the same amount to develop.

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Definitions:

Definitional Theory

A theory that focuses on how terms or concepts are defined and the implications of these definitions for understanding and research.

Family Resemblance Structure

An overlapping set of semantic features shared by members of a category, such that no members of the category need to have all of the features but all members have at least one of them.

Concept

A general idea or understanding that is foundational to further knowledge and understanding in any domain.

Defining Features

Characteristics that establish the nature of something and set it apart from others.