1. Sara is planning to start a new designer cloth shop. Her problem is to decide how large her shop should be. The annual returns will depend on both the size of her shop and a number of marketing factors related to the current market conditions and demand for designer wear. After a careful analysis, Sara came up with the following table: Size of Shop Good Market (R.o.) Fair Market (R.O.) Poor market (R.o.) Small Scale 1200 + a 2000 + b 400 + c Medium Scale 1500 + d 3000 + e 1800 +f Large Scale 2200 + a 3000 + b 2500 + c Very Large Scale 3000 + d 5000 + e 2000 +f What will be her decision based on iii. Laplace criterion Note: a = 8 b = 9 c = 5 d = 8 e =1 and f= 9

1. Sara is planning to start a new designer cloth shop. Her problem is to decide how large her shop should be. The annual returns will depend on both the size of her shop and a number of marketing factors related to the current market conditions and demand for designer wear. After a careful analysis, Sara came up with the following table: Size of Shop Good Market (R.o.) Fair Market (R.O.) Poor market (R.o.) Small Scale 1200 + a 2000 + b 400 + c Medium Scale 1500 + d 3000 + e 1800 +f Large Scale 2200 + a 3000 + b 2500 + c Very Large Scale 3000 + d 5000 + e 2000 +f What will be her decision based on iii. Laplace criterion Note: a = 8 b = 9 c = 5 d = 8 e =1 and f= 9

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 14PAE

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