on: 1 p 21 of 28 (13 complete) is Test: 28 pts pos Next Question A clothing manu
ID: 3314758 • Letter: O
Question
on: 1 p 21 of 28 (13 complete) is Test: 28 pts pos Next Question A clothing manufacturer must decide which of two clothing lines to emphasize for the spring season, her usual line or a budget line. Her success with each line depends on the state of the economy next year. in $30,000 if the economy is weak, and a profit of $20,000 if the economy is in-between. If she emphasizes the usual line, she will make a proft of $38,000 if the economy is strong, a profit of $10,000 f the economy is the budget line, she will make a profit of $16,000 if the economy is strong, a profit of weak, and a profit of $29,000 if the economy is in-between. Prepare a payoff matrix. O A Budget Line Usual Line Strong Economy 16,000 38,000 In-between Economy 30,000 10,000 Weak Economy 20,000 29,000 OB. Budget Line Usual Line Strong Economy 16,000 38,000 In-between Economy 20,000 29,000 Weak Economy 30,000 10,000 O c. Budget Line Usual Line Strong Economy 16,000 38,000 In-between Economy 29,000 Weak Economy 10,000 20,000 30,000Explanation / Answer
As the question suggested for strong economy the profit made is $16,000 and $38,000 for budget line and usual line respectively
Also for in-between economy the profit made is $20,000 and $29,000 for budget line and usual line respectively
Also for weak economy the profit made is $30,000 and $10,000 for budget line and usual line respectively
The pay off matrix that satisfying all these condition is Option (B)
Option (B) is correct
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