Question: A small building contractor has recently experienced two successive years in which work opportunities exceeded the firms capacity. The contractor must now make a decision

A small building contractor has recently experienced two successive years in which work opportunities exceeded the firms capacity. The contractor must now make a decision on capacity for next year. Estimated profits under each of the two possible states of nature are as shown in the table below. NEXT YEAR'SDEMANDAlternativeLowHighDo nothing$

50 *

60

Expand

20 80

Subcontract

40 70

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