Business, 23.03.2021 01:00 finessinsam

You are a t-shirt designer and have a new design you are excited about. Another company offers to buy your design for $6,000. Or you could produce and sell your own t-shirts with this new design. You estimate you have a 25% chance your t-shirt is a huge success, a 20% chance of your t-shirt is marginally liked and earns gross revenues of $4,000, and a 55% chance your t-shirt is a failure and earns gross revenue of $500. If your t-shirt is a huge success, there is a 50% chance it will earn gross revenues of $25,000, a 15% chance it will earn gross revenues of $30,000, and a 35% chance it will earn gross revenues of $40,000. The cost to produce the t-shirts yourself is $3,000. Assume you make decisions using expected value, and you make the optimal decision. What is your expected earnings (in $) from your new t-shirt design

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 07:10

Refer to the payoff matrix. suppose that speedy bike and power bike are the only two bicycle manufacturing firms serving the market. both can choose large or small advertising budgets. is there a nash equilibrium solution to this game?

Answers: 1

Answer

Business, 22.06.2019 12:50

In june 2009, at the trough of the great recession, the bureau of labor statistics announced that of all adult americans, 140,196,000 were employed, 14,729,000 were unemployed and 80,729,000 were not in the labor force. use this information to calculate: a. the adult population b. the labor force c. the labor-force participation rate d. the unemployment rate

Answers: 3

Answer

Business, 22.06.2019 13:40

Determine if the following statements are true or false. an increase in government spending can crowd out private investment. an improvement in the budget balance increases the demand for financial capital. an increase in private consumption may crowd out private investment. lower interest rates can lead to private investment being crowded out. a trade balance in sur+ increases the supply of financial capital. if private savings is equal to private investment, then there is neither a budget sur+ nor a budget deficit.

Answers: 1

Answer

Business, 22.06.2019 21:00

You have $5,300 to deposit. regency bank offers 6 percent per year compounded monthly (.5 percent per month), while king bank offers 6 percent but will only compounded annually. how much will your investment be worth in 17 years at each bank

Answers: 3

Answer

You know the right answer?

You are a t-shirt designer and have a new design you are excited about. Another company offers to bu...

Questions