Question: Philip Musa can build either a large electronies section or a small one in his Birmingham drugstore. He can also gather additional information or simply
Philip Musa can build either a large electronies section or a small one in his Birmingham drugstore. He can also gather additional information or simply do nothing. If he gathers additional information, the results could suggest either a favorable or an unfavorable market, but it would cost him $ to gather the information. Musa believes that there is a chance that the information will be favorable. If the market is favorable, Musa will earn $ with a large section or $ with a small one. With an unfavorable electronics market, however. Musa could lose $ with a large section or $ with a small section. Without gathering additional information. Musa estimates that the probability of a favorable market is
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