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ABC Industries is considering a clever food mixer as a new consumer product. They have no idea whether or not the XYZ Co will come out with a competitive product. The following table shows all the individual alternatives with corresponding payoffs or losses. Determine the net payoff or loss using the Hurwicz's criterion of realism of alpha Hint: look carefully at the words "profit" and "loss"
Alternative
Payoff or loss
If ABC adds an assembly line for the product and XYZ does not follow with a competitive product, their expected profit is:
$
If ABC add an assembly line and XYZ does follow, they still expect a loss of:
$
If ABC adds a new plant addition and XYZ does not produce a competitive product, they expect a profit of:
$
If XYZ does compete for this market, ABC expects a loss of:
$
A
$
B
$
C
$
D
$
E
$
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