A Company Producing Apps for a Social Networking Site Is

Essay

A company producing apps for a social networking site is deciding which path to pursue.The first is to create an app that has universal appeal but faces a crowded market.This app,A,would have sales of 100,000 copies at $1 each under ideal conditions,but under tough conditions would have sales of only 60,000 copies at $.80 each.The other app,B,would have sales of 500,000 units at $.50 each under ideal conditions but sales would be reduced to 10,000 units at $.50 each under tough conditions.If ideal and rough conditions occur with the same frequency,which app should the company produce? Note: both apps cost the same amount to develop.