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seropon [69]
2 years ago
7

As the manager of Smith Construction, you need to make a decision on the number of homes to build in a new residential area wher

e you are the only builder. Unfortunately, you must build the homes before you learn how strong demand is for homes in this large neighborhood. There is a 60 percent chance of low demand and a 40 percent chance of high demand. The corresponding (inverse) demand functions for these two scenarios are P = 300,000 – 400Q and P = 500,000 – 275Q, respectively. Your cost function is C(Q) = 140,000 + 240,000Q. How many new homes should you build, and what profits can you expect?
Business
1 answer:
Elanso [62]2 years ago
7 0

Answer:

1600=

Explanation:

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