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The Owner of Tastee Cookies Needs to Decide Whether to Lease

Question 21

Multiple Choice

The owner of Tastee Cookies needs to decide whether to lease a small,medium,or large new retail outlet.She estimates that monthly profits will vary with demand for her cookies as follows: The owner of Tastee Cookies needs to decide whether to lease a small,medium,or large new retail outlet.She estimates that monthly profits will vary with demand for her cookies as follows: If she feels there is a 30% chance that demand will be high,what is her expected payoff with perfect information? A) $1,600 B) $1,100 C) $1,000 D) $900 E) $500 If she feels there is a 30% chance that demand will be high,what is her expected payoff with perfect information?


A) $1,600
B) $1,100
C) $1,000
D) $900
E) $500

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