Answer on Economics of Enterprise Question for victor njiru
A manufacturer of toys is interested to know whether he should launch a deluxe model or a popular model of a toy. if the deluxe model is launched the probabilities that the mkt will be good,fair or poor are given by 0.4,0.3 and 0.3 respectively with payoffs of shs 180,000,shs 100,000 and shs -20,000 respectively.if the popular model is introduced the corresponding probabilities are given by 0.3, 0.4, and 0.3 with respective payoffs of shs 200,000,shs 150,000 and -20,000.advice on which model to be launched.
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