A supermarket operator must decide whether to build a medium size supermarket or a large supermarket at a new location. Demand at the location can be either average or favourable with estimated probabilities to be 0.35 and 0.65 respectively. If demand is favorable, the store manager may choose to maintain the current size or to expand. The net present value of profits is $623,000 if the firm chooses not to expand. However, if the firm chooses to expand, there is a 75% chance that the net present value of the returns will be 330,000 and 25% chance the estimated net present value of profits will be $610,000. If a medium size supermarket is built and demand is average, there is no reason to expand and the net present value of the profits Is $600,000. However, if a large supermarket is built and the demand turns out to be average, the choice is to do nothing with a net present value of $100,000 or to stimulate demand through local advertising. The response to advertising can be either unfavorable with a probability of 0.2 or faverable with a probability of 0.8. If the response to advertising is unfavorable the net present value of the profit is ($20,000). However, if the response to advertising is favourable,then the net present vale of the profits in $320,000. Finally, if the large plant is built and the demand happens to be high the net present value of the profits is $650.000. Dram a decision tree and determine the most appropriate decision for this company.

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Answer 1

Answer:

Supermarkets are often cited as among the types of businesses with the lowest profit margins. It's true. Grocery store profit margins typically range from 1 percent to 3 percent, depending on the items. Grocery stores make their money on volume. They may not make much on any one item, but it's the rare shopper who only buys one item. That's why the store kindly provides big shopping carts for their customers. With not much additional effort, the grocery store sells you 20 items or more, making much more profit than they would have if you had bought only one item.Explanation:


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define depolarisation​

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It means a sudden change in membrane potential which usually is from a negative to positive internal charge.

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the loss of polarization which is caused by the change in the permeability of sodium ions.

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Explain some questions you might have about becoming a part of the MUN after reading the text.

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Sample answer: 1. What topics will I be interested in? 2. Who else is participating? 3. How do I start in the program?

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Edge

Consider the curve defined by x^2=e^x-y for x>0. At what value of x does the curve have a horizontal tangent?​

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The curve [tex]x^{2} = e^{x-y}[/tex] for [tex]x > 0[/tex] has a horizontal tangent for [tex]x = 2[/tex].

In this question we must use implicit differentiation to determine the value of [tex]x[/tex] associated with a given slope. By differential calculus we know that a curve of the form [tex]y = f(x)[/tex] has a horizontal tangent if and only if [tex]\frac{dy}{dx} = 0[/tex]. Now we derive an expression for the first derivative:

[tex]2\cdot x = e^{x-y}\cdot \left(1-\frac{dy}{dx} \right)[/tex]

[tex]1 - \frac{dy}{dx} = \frac{2\cdot x}{e^{x-y}}[/tex]

[tex]\frac{dy}{dx} = 1 - \frac{2\cdot x}{e^{x-y}}[/tex]

[tex]\frac{dy}{dx} = 1 - \frac{2\cdot x}{x^{2}}[/tex]

[tex]\frac{dy}{dx} = 1 - \frac{2}{x}[/tex] (1)

If we know that [tex]\frac{dy}{dx} = 0[/tex], then the value of [tex]x[/tex] so that the curve have a horizontal tangent is:

[tex]1-\frac{2}{x} = 0[/tex]

[tex]\frac{2}{x} = 1[/tex]

[tex]x = 2[/tex]

The curve [tex]x^{2} = e^{x-y}[/tex] for [tex]x > 0[/tex] has a horizontal tangent for [tex]x = 2[/tex].

To learn more on implicit differentiation, we kindly invite to check this verified question: https://brainly.com/question/20319481

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