Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

You're the manager of global opportunities for a U.S. manufacturer, who is considering expanding sales into Europe. Your market research has identified three potential market opportunities: England, France, and Germany. If you enter the English market, you have a 0.5 chance of big success (selling 100,000 units at a per unit profit of $8), a 0.3 chance of moderate success (selling 60,000 units at a per unit profit of $6), and a 0.2 chance of failure (selling nothing). If you enter the French market, you have a 0.4 chance of big success (selling 120,000 units at a per-unit profit of $9), a 0.4 chance of moderate success (selling 50,000 units a a per unit profit of $6), and a 0.2 chance of failure (selling nothing). If you enter the German market, you have a 0.2 chance of huge success (selling 150,000 units at a per unit profit of $10), a 0.5 chance of moderate success (selling 70,000 units a a per unit profit of $6), and a 0.3 chance of failure (selling nothing). If you can enter only one market, and the cost of entering the market (regardless of which market you select) is $250,000, should you enter on of the European markets? If so, which one? If you enter, what is your expected profit?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M965636

Have any Question?


Related Questions in Microeconomics

Question costs associated with the manufacture of miniature

Question: Costs associated with the manufacture of miniature high-sensitivity piezoresistive pressure transducers .-is, exist73, 000 per year. A clever industrial engineer found that by spending exist 16, 000 now to reco ...

Quesiton we went to the countertop shop on saturday it has

Quesiton: We went to the Countertop Shop on Saturday. It has a nice storefront along Airport Highway and a nice showroom, too. Better than you would think looking at its current web presence. Some helpful info we got fro ...

Question according to an article in the new york times the

Question: According to an article in the New York Times, the Venezuelan government "imposes strict price controls that are intended to make a range of foods and other goods more affordable for the poor. They are often th ...

Question c 10 09 y-t i 80 g 65 and t 50imports and

Question: C = 10 + 0.9 (Y-T), I = 80, G = 65, and T = 50 Imports and exports are given by: IM = 0.3Y and X = 0.2Y* Foreign income (Y*) = 1000 (a) Draw representative graphs of the goods market and net-exports. Draw your ...

Assignment describe international standard diagnosis

Assignment: Describe international standard diagnosis classification use in the US health care reimbursement and billing system. Utilizing your textbook and the Library: • Describe the importance of proper coding in heal ...

Question describe three key inputs or factors of production

Question: Describe three key inputs (or factors of production) and fixed and variable costs involved in the production of your chosen product or service. Analyze the factors that impact your choice of inputs to produce t ...

Question sam can sell all of the output he wants at a price

Question: Sam can sell all of the output he wants at a price of $1000. He has the following cost function: TC = 200,000 + 80Q + .08Q 2 Calculate the profit maximizing quantity. Calculate the maximum profits of the firm. ...

Question requires calculus the demand facing a monopolist

Question: (Requires calculus) The demand facing a monopolist is Q = 50 - 2P and total cost is TC = Q + 4Q 2        Find the monopolist's optimal price, quantity, and profit. Graph the solution. a. If this were instead a ...

Discussion question challenger brandsreview secrets of

Discussion Question: Challenger Brands Review Secrets of Challenger Brands Your brand is a challenger-it is not the category leader. Explain a few ways that you can apply the ideas in the article to your brand. In your f ...

Question explain the following theoriesa what is the coase

Question: Explain the following theories: A. What is the Coase Theorem, and when is it likely to be helpful in leading a market with externalities to provide the socially efficient level of output? B. In the theory of co ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As