Homework Week 7 - Conner - BUS5421 Managerial Economics...

This preview shows page 1 - 2 out of 3 pages.

BUS5421 Managerial EconomicsHomework Week 7Stephen ConnerAugust 14, 2016Problem 17-1 Global ExpansionYou’re the manager of global opportunities for a U.S. manufacturer, who is considering expanding sales into Asia. Your market research has identified the market potential in Malaysia, Philippines and Singapore as described next:Success LevelBigMediocreFailureMalaysiaProbability0.30.30.4Units1,200,000600,0000PhilippinesProbability0.30.50.2Units1,000,000320,0000SingaporeProbability0.70.20.1Units700,000400,0000The product sells for $10 and has unit costs of $8. 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 these markets? If so, which one? If you enter, what is your expected profit.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture