Asked by Jenna

A manufacturer is trying to decide whether to build Building A or Building B. The profit per unit is $5.
Building A gets an annual cost of $100,000 with a production capacity of 25,000 units each year.
Building B gets an annual cost of $200,000 with a production capacity of 50,000 units each year.
There are 4 states of nature (demand) -- 5k, 10k, 25k, & 50k units per year.
How is the payoff table constructed?

Answers

There are no human answers yet.
There are no AI answers yet. The ability to request AI answers is coming soon!

Related Questions