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
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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
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