Question
A new medical Equipment sales office in Tamali (Novartico) is planning on flooding the market with a newly released state-of-the-art echography. The offices major concern
A new medical Equipment sales office in Tamali (Novartico) is planning on flooding the market with a newly released state-of-the-art echography. The offices major concern was the demand for such equipment given its high markup price of $3000. The US manufacturer promised the HQ office to reduce prices by 20% if Novartico would buy 1000 pieces. However, purchase of 750 wont get them as much of a discount but rather 10%, and with 500 they get a 7% discount. Based on three criteria, how many would you purchase? Then, assume the probabilities of the three demand states as 0.3, 0.45 and 0.25 respectively. What price would you give an economist for sneaking to you a recent World Bank report on the demand for medical equipment in the region?
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