Kallie Inc

Multiple Choice

Kallie Inc. ,a,small parts manufacturer,has just engineered a new product for the automotive industry.In order to produce the part the company can expand existing facilities,acquire a competitor,or subcontract production.The company believes the product will either experience high market demand or low market demand.The following payoff table describes the company's decision situation. The best decision for Kallie Inc. ,using the Hurwicz decision criterion with a coefficient of optimism equal to 0.3 is to

A) expand facilities.
B) acquire competitor.
C) subcontract production.
D) make no decision.