Hello can any one help with this Economics question: A contractor spends Dollar 3,000 to prepare for a bid on a construction project which, after deducting manufacturing expenses and the cost of bidding, will yield a profit of dollar 25,000 if the bid is won. If the chance of winning the bid is ten per

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Hello can any one help
with this Economics
question:
A contractor spends
Dollar 3,000 to prepare for
a bid on a construction
project which, after
deducting manufacturing
expenses and the cost of
bidding, will yield a profit
of dollar 25,000 if the bid
is won. If the chance of
winning the bid is ten per
cent, compute his
expected profit and state
the likely decision on
whether to bid or not to
bid?
Transcribed Image Text:Hello can any one help with this Economics question: A contractor spends Dollar 3,000 to prepare for a bid on a construction project which, after deducting manufacturing expenses and the cost of bidding, will yield a profit of dollar 25,000 if the bid is won. If the chance of winning the bid is ten per cent, compute his expected profit and state the likely decision on whether to bid or not to bid?
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