A Firm Making Production Plans Believes There Is a 30 $\quad$

Multiple Choice

A firm making production plans believes there is a 30% probability the price will be $10,a 50% probability the price will be $15,and a 20% probability the price will be $20.The manager must decide whether to produce 6,000 units of output (A) ,8,000 units (B) or 10,000 units (C) .The following table shows 9 possible outcomes depending on the output chosen and the actual price. $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Pront (Loss) when price is }$
$\begin{array}{rrrr}\underline{\text { Production }} & \underline{ \$ 10} & \underline{\$ 15} & \underline{\$ 20} \\ 6,000(A) & -\$ 200 & \$ 400 & \$ 1,000 \\8,000(B) & -\$ 400 & \$ 600 & \$ 1,600 \\10,000(C) & -\$ 1,000 & \$ 800 & \$ 3,000\end{array}$
What is the expected profit if 6,000 units are produced?

A) $171
B) $840
C) $640
D) $340
E) $260