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.

Question

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.

Quizplus · Accepted Answer

The Answer of 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.

A Small Parts Manufacturer Has Just Engineered a New Product