A company produces a product X and realizes Php 80 profit per unit. However, if the gadget is faulty, they will incur a loss of Php 500 in repairing it. If the probability that a gadget is faulty is 1/100. What is the long run expected profit from producing X? A. Php 44.2 B. Php 54.2 C. Php 64.2 D. Php 74.2 E. No correct answer

A company produces a product X and realizes Php 80 profit per unit. However, if the gadget is faulty, they will incur a loss of Php 500 in repairing it. If the probability that a gadget is faulty is 1/100. What is the long run expected profit from producing X? A. Php 44.2 B. Php 54.2 C. Php 64.2 D. Php 74.2 E. No correct answer

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 7MC

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