Transcendent Technologies is deciding between developing a complicated thought-activated software, or a simple voice-activated software. Since the thought-activatedsoftware is complicated, it only has a 30% chance of actually going through to a successfullaunch, but would generate revenues of $50million if launched. The voice-activatedsoftware is simple and hence has a 80% chance of being launched but only generates arevenue of $10million. The complicated technology costs 10million, whereas the simpletechnology costs 2 million.What is the expected profit from developing the complicated software?$10 million$15 million$20 million$5 million

The gap between expected profits and expected costs is the expected value. The expected profit is…

Answered: Transcendent Technologies is deciding…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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true or false If profit (∏=TR−TC∏=TR−TC) is equal to zero, the entrepreneur has earned nothing for his talent and risk taking.
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Tesla Many analysts cite Tesla as the most innovative car company to enter the automobile industry in recent history. The company was founded in 2003 with the vision of being an independent automaker that would build affordable electric cars. Over the next 17 years, it produced five different car models and continues to introduce concepts for additional vehicles. It has also expanded into home battery and solar panel products. In the first half of 2020, 81% of electric vehicles sold were Teslas, and its affordable sedan, the Model 3, is the all-time bestselling electric vehicle ever. Tesla’s cars helped create a new market for electric vehicles. In addition, its cars have technological components that have advanced safety throughout the automobile industry. Its cars can come with self-driving capabilities and advanced safety warnings. Parts of these technologies have been adopted by other car makers. 1.Think about the automobile industry. Explain what type of market it is by answering…
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Time remaining: 01 :53 :32 Economics A dealer decides to sell an antique automobile by means of an English auction with a reservation price of $900. There are two bidders. The dealer believes that there are only three possible values, $7,200, $3,600, and $900, that each bidder’s willingness to pay might take. Each bidder has a probability of 1/3 of having each of these willingnesses to pay, and the probabilities for each of the two bidders are independent of the other’s valuation. Assuming that the two bidders bid rationally and do not collude, the dealer’s expected revenue from selling the car is approximately Group of answer choices $3,600. $2,500. $3,900. $5,400. $7,200.
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