A company must decide now which of three products to make next year to plan and order proper materials. The cost per unit of producing each product will be determined by whether a new union labor contract passes or fails. The cost per unit for each product, given each contract result, is shown in the following payoff table:

Determine which product should be produced, using the following decision criteria.
a. Minimin
b. Minimax

Transcribed Image Text:

Product 1 2 3 Contract Outcome Pass $7.50 4.00 6.50 Fail $6.00 7.00 3.00