Eddy Company is starting business and is unsure of whether to sell its product assembled or unassembled. The unit cost of the un

Response:

A career can be likened to a "building block," whereas a job can be compared to a "castle or a tower"

Response:

There will be an increase in equilibrium quantity, but the impact on equilibrium price remains uncertain.

Note:

Due to the scientists' discovery, demand for oranges will rise, as will the price.

Additionally, the introduction of new fertilizers will boost the supply of oranges, leading to a price decrease.

Taking both of these factors into account indicates that there will be a rise in equilibrium quantity, while the effect on equilibrium price cannot be determined.

Answer:

a) the small bus

b) the medium or large bus

c) the small bus

Explanation:

a) using the maximin criterion, the manager aims to maximize the least possible profit (a pessimistic approach), which results in the following profits:

Bus size Demand

Low Medium High

Small 50 60 70 → minimum profit = 50

Medium 40 80 90 → minimum profit = 40

Large 20 50 120 → minimum profit = 20

Thus, the optimal choice yielding the highest minimum profit is the small bus.

b) applying the maximin criterion, the manager will seek to minimize potential maximum losses, determining losses based on the best profit scenario:

Bus size Demand

Low Medium High

Small 0 -20 -50 → maximum loss = -50

Medium -10 0 -30 → maximum loss = -30

Large -30 -30 0 → maximum loss = -30

Hence, the option that bears the least maximum loss is either the medium or large bus.

c) for calculating the expected value of each option:

small = 30/100*50 + 30/100*60 + 40/100*70 = 61

medium = 30/100*40 + 30/100*80 + 40/100*90 = 72

large = 30/100*20 + 30/100*50 + 40/100*120 = 69

The small bus turns out to be the best choice, as it has the highest expected profit.

If a business finds itself with reduced profits, it might pursue various strategies to enhance its current products instead of creating new ones since this path typically incurs lower costs and potentially boosts profitability. The preferable responses are B. Product Extension and C. New Product Placement.

Reintroduction involves launching the product with a more inventive marketing strategy. It can focus on a different market segment, provide better information about the product, and utilize more engaging advertisements. Adjustments to the product's packaging can also help it appear more appealing and new.

Product extension targets new markets, which can include exporting goods. While this strategy might carry higher costs, it can elevate the product's quality by meeting export standards. It’s about shifting markets, not altering the product.

New product placement is when products are promoted through media. For instance, showcasing products in films allows characters to use them, thus raising awareness among viewers about how to use them while simultaneously promoting the brand, without changing any product features, merely the media placement.

<span>Rebranding can also be a viable strategy. This means introducing a product under a new name and modifying not only the packaging but the overall presentation. This can provide a fresh image aimed at attracting a new audience or expanding the existing one.</span>