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Chris Suit is administrator for Lowell Hospital. She is trying to determine whether to build a large wing on the existing hospital, a small wing or no wing at all.
POPULATION TREND Growth Stable
Build large wing 150 thousand - 85 thousand Build small wing 60 thousand -45 thousand do not build 0 0
Assuming that each state of nature has the same likelihood, determine the best alternative.
The best alternative is to (build large wing, small wing, or not build), with an EMV= $ ____ thousand (round to one decimal place)
If elasticity is -2, price is $10, and marginal cost is $8, should you raise or lower price?
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