a= 1, b= 9, c=1, d=8, e=8 8. A Factory manufactures three types of Cars. The fixed and variable costs are given below. (Refer 'Instruction to students' for the values of a,b,c.) Fixed Cost Variable cost/unit Car 1 400 (a +b+ c) Car 2 300 (b +c+d) Car 3 500 (c+d +e) The demand is uncertain. If the demand is poor the factory expected to sell 200 units, if demand is moderate then it will sell 500 units and if it is high the sales is expected 1000 units. If sales prices of each type of car is 12,000 Omr/unit then a. Prepare the payoff table. b. Identify the decision taken under the pessimistic approach. c. Identify the decision taken under Hurwicz criterion with the optimism (0.7).
a= 1, b= 9, c=1, d=8, e=8 8. A Factory manufactures three types of Cars. The fixed and variable costs are given below. (Refer 'Instruction to students' for the values of a,b,c.) Fixed Cost Variable cost/unit Car 1 400 (a +b+ c) Car 2 300 (b +c+d) Car 3 500 (c+d +e) The demand is uncertain. If the demand is poor the factory expected to sell 200 units, if demand is moderate then it will sell 500 units and if it is high the sales is expected 1000 units. If sales prices of each type of car is 12,000 Omr/unit then a. Prepare the payoff table. b. Identify the decision taken under the pessimistic approach. c. Identify the decision taken under Hurwicz criterion with the optimism (0.7).
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:a= 1, b= 9, c=1, d=8,
e=8
8. A Factory manufactures three types of Cars. The fixed and variable costs are given below. (Refer 'Instruction
to students' for the values of a,b,c.)
Fixed Cost Variable cost/unit
Car 1 400
(a + b + c)
Car 2 300
(b +c + d)
Car 3 500
(c + d +e)
The demand is uncertain. If the demand is poor the factory expected to sell 200 units, if demand is
moderate then it will sell 500 units and if it is high the sales is expected 1000 units. If sales prices of each
type of car is 12,000 Omr/unit then
a. Prepare the payoff table.
b. Identify the decision taken under the pessimistic approach.
c. Identify the decision taken under Hurwicz criterion with the optimism (0.7).
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