What is your expected profit

Assignment Help Microeconomics
Reference no: EM13763629

You're the manager of a global opportunities for a U .S. manufacturer, who is considering expanding sales into Europe. Your market research has identified three potential market opportunities: England, France, and Germany. If you enter the English market, you have a 0.5 chance of big success (selling 100,000 units at a per-unit profit of $8), a 0.3 chance of moderate success (selling 60,000 units at a per-unit profit of $6), and a 0.2 chance of failure (selling nothing). If you enter the French market, you have a 0.4 chance of big success (selling 120,000 units at a per-unit profit of $9), a 0.4 chance of moderate success (selling 50,000 units at per-unit profit of $6), and a 0.2 chance of failure (selling nothing).

If you enter the German market, you have a 0.2 chance of huge success (selling 150,000 units at a per-unit profit of $10), a 0.5 chance of moderate success (selling 70,000 units at a per-unit profit of $6), and a 0.3 chance of failure (selling nothing).

If you can enter only one market, and the cost of entering the market (regardless of which market you select) is $250,000, should you enter one of the European markets? If so, which one? If you enter, what is your expected profit? 

Reference no: EM13763629

Questions Cloud

Commit to a posted price what price maximizes profits : Your dealings on the secondhand market lead you to believe that there is a 0.4 chance a random buyer will pay $300,000, a 0.1 chance the buyer will pay $400,000, and a 0.25 chance it will not sell. If you must commit to a posted price what price m..
Detailed description of each step in the process : A tutorial has many components in its superstructure, but the most important section of the tutorial is the process description. In this Discussion Assignment, you will draft the text for the Process section of your Final Project
Write about an entrepreneur of interest which is paul alan : Identify and write about an entrepreneur of interest which is (Paul Alan). Please include a reference page and use at least three references from print or electronic articles or books.
Slogans and trade dress infringement : Slogans and Trade Dress Infringement-As you know, CARDWARE likes to delve into clothing styles for a wide target audience. Recently, it came up with a name for its slogan which CARDWARE has placed on the right front of its jersey sweaters
What is your expected profit : If you can enter only one market, and the cost of entering the market (regardless of which market you select) is $250,000, should you enter one of the European markets? If so, which one? If you enter, what is your expected profit?
List the steps you would take to help joe : Joe Smith owns a construction company. Yesterday a subcontractor calls him saying that he needs a replacement check for the last job he completed. List the steps you would take to help Joe. Include a chain of custody report and discuss what tools y..
Strategic management accounting : There are the relationships in the area of "strategic financial management" & "strategic management accounting"
Analyze the country as a potential location : Analyze the country as a potential location using the simplified market-penetration grid. Use the weights provided, but support your rankings(0-4) with your research.
Identify the companys domestic environment : Identify the company's domestic environment and discuss how the government regulations affect its domestic environment it must operate in.

Reviews

Write a Review

Microeconomics Questions & Answers

  What are the firm economic profits

The marginal revenue curve of a monopoly crosses its marginal cost curve at $30 per unit, and an output of 2 million units. The price that consumers are willing and able to pay for this output is $40 per unit.

  How might advertising with no apparent informational content

Does a monopolistic competitor produce too much or too little output compared to the most efficient level? What practical considerations make it difficult for policymakers to solve this problem?

  How to evaluate the benefits of each of the two policies

How to evaluate the benefits of each of the two policies?

  Investment banking firms involves

Guaranteeing a price for new capital to the issuing firm.Selling stock over the Internet.Issuing stock and using the proceeds to purchase bonds.

  Long-run cost curves are planning curves

Long-run cost curves are planning curves, while short-run cost curves are operating curves. Do you agree or disagree with this statement?

  Calculate marginal pdf''s of both variables

Calculate marginal pdf's of both variables and calculate the probability that Bobo has fun if Bobo studies economics.

  What dilemma faces regulators attempting to regulate

what dilemma faces regulators trying to regulate natural monopolies? distinguish among private goods public goods

  Country investment final casenbspthe woman in the dark suit

country investment final casenbspthe woman in the dark suit serious women always wear black suits leafed through the

  Which of the methods of encouraging growth would you

the world bank is currently advising newly industrialized countries on how to encourage growth and they have asked for

  Find the economic order quantity

Find the economic order quantity, total cost and the reorder point, What quantity should be ordered?

  What price must you charge for the meal does the answer

as a budding entrepreneur you have purchased a small bagel shop. you have engaged in a market study to categorize your

  What does economics have to say about global warming

Using concepts used just in Microeconomics(and ignoring any that you might think relevant from Macroeconomics), what does economics have to say about global warming. Is the lesser role for he market and of competition in China.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd