Apr 27, XXXXXXXXXXDecision Analysis. Your firm is considering entering a new geographic market. It...

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Apr 27, XXXXXXXXXXDecision Analysis. Your firm is considering entering a new geographic market. It is unclear how successful your product would be in that market ...

Robert · Accepted Answer

ECON 8020: Resource Allocation
ECON 3300 
Prof. Tutterow 
 Spring 2016 
Final – PART I
NAME: _______________________________________________
FUN WITH DECISION ANALYSIS (25 Points)
Your firm is considering entering a new geographic market. It is unclear how successful 
your product would be in that market.
To enter this market, you must invest $2,000,000 on initial advertising. After investing in 
the advertising, the amount of product you actually sell will depend on the level of 
demand for your product. If the “high” level of demand is realized, then the “operating 
profit” (revenues less operating cost) will be $2,800,000. If the “medium” or “low” 
demand levels are realized, your “profit” will be $2,000,000 and $1,000,

Apr 27, XXXXXXXXXXDecision Analysis. Your firm is considering entering a new geographic market. It is unclear how successful your product would be in that market ...

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