Who is considering expanding sales into europe

Assignment Help Microeconomics
Reference no: EM13174792

You are the manager of global opportunities for a U.S. manufacturer, who is considering expanding sales into Europe. Your market research has identified three potential market opportunities: England, France, and Germany. If you enter the English market, you have a 0.5 chance of big success (selling 100,000 units at a per-unit profit of $8), a 0.3 chance of moderate success (selling 60,000 units at a per-unit profit of $6), and a 0.2 chance of failure (selling nothing). If you enter the French market, you have a 0.4 chance of big success (selling 120,000 units at a per-unit profit of $9), a 0.4 chance of moderate success (selling 50,000 units at a per-unit profit of $6), and a 0.2 chance of failure (selling nothing). If you enter the German market, you have a 0.2 chance of huge success (selling 150,000 units at a per-unit profit of $10), a 0.5 chance of moderate success (selling 70,000 units at a per-unit profit of $6), and a 0.3 chance of failure (selling nothing). If you can enter only one market, and the cost of entering the market (regardless of which market you select) is $250,000, should you enter one of the European markets? If so, which one? If you enter, what is your expected profit?

Reference no: EM13174792

Questions Cloud

What is the firms optimal markup : the fully allocated cost of a product is $10. If the price elasticity of demand for the product is -2, then the firms optimal markup is: 10%, 100%, 200%or 300%.
What is the mass change accompanying the formation of co : What is the mass change (in grams) accompanying the formation of CO and H2 in the water gas reaction?
State and draw the structural formula of val-ala-leu : Draw the structural formula of Val-Ala-Leu. Draw the molecule by placing atoms on the grid and connecting them with bonds. Include all hydrogen atoms
The solution ph to calculate the concentration of hydronium : Use the solution pH to calculate the concentration of hydronium ion present
Who is considering expanding sales into europe : the manager of global opportunities for a U.S. manufacturer, who is considering expanding sales into Europe. Your market research has identified three potential market opportunities: England, France, and Germany.
Explain what is the conc of glucose in ppm : Glucose is approximately .10 % of human blood, by weight. Glucose has a formula weight of 180 g/mol. What is the conc of glucose in ppm
Aldol synthesis using acetone and para-nitrobenzaldehyde : What product do you get when you perform an aldol synthesis using acetone and para-nitrobenzaldehyde?
Prepare a statement of cash flows in accordance with aasb : Using the direct method of presenting cash flows from operating activities, prepare a Statement of Cash Flows in accordance with AASB 107 for the year ended 30 June 2012, including a reconciliation of cash flows arising from operating activities a..
Determine profit-maximizing price : If the price elasticity of demand for bananas is -1.5 and the price elasticity of demand for grapefruit is -2.5, and the marginal cost of producing each of the items is $0.50 each, what is the profit-maximizing price for each?

Reviews

Write a Review

Microeconomics Questions & Answers

  Define four-firm concentration ratio and herfindahl index

Suppose that the most popular car dealer in your area sells 10 percent of all vehicles. If all other car dealers sell either the same number of vehicles or fewer, what is the largest value that the Herfindahl index could possibly take for car deal..

  Explanation of the relevance to the firm

General Electric (GE) is the company we selected.  Explanation of the relevance to the firm,  A strategy of how the firm will respond ,  A goal to maximize revenues for the years ahead 45

  Negative externalities that arise from the production

Negative externalities that arise from the production of a good;a. cause an increase in the demand for the goodb. cause a decrease in the demand for the goodc. impose costs on third partiesd. bring private costs into equality with social costs.

  What is maximized profit

The marginal cost of making a wedding cake is $200. In order to maximize profits, Laura should make more than 20 wedding cakes per month.  make fewer than 20 wedding cakes per month.

  The emergence in the asia/pacific region

A key year for them is 2015, when Southeast Asia's Open Sky Agreement comes into effect, allowing unlimited flights to all 10 ASEAN members: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

  Describe the concept of comparative advantage

Economic opportunities happen from nations which develop industries in which they have a comparative advantage and describe the concept of comparative advantage.

  Calculate kalvin''s expected haul over the four event

Calculate Kalvin's expected haul over the four event crime spree and calculate the probability that Kalvin will never get caught over the four days.

  Determining marginal revenue and marginal cost

Find out the Marginal Revenue and Marginal Cost

  Devise a hypothetical business situation

Devise a hypothetical business situation in which buying a lookback call option on a commodity may be a sound strategy for you. How about a down-and-out call option?

  Example of monopolistic competition

Describe why the following is an example of monopolistic competition: There are a number of fast-food restaurants in town, and they compete fiercely.

  Analysis of a proposed soda tax

What does the market for sugary sodas look like?  Provide a supply-demand graph with realistic prices.

  Estimate the total expenditure as present value

Three fans are to be installed at a mine site; one immediately at a price of $260,000, one in five years at an estimated cost of $310,000 and the third in eight years at a cost of $480,000. Find out the total expenditure as a present value if the ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd