Consider a firm that manufactures a product in the United States, and sells it in both the US and Europe. The marginal cost per unit of capacity is $95. The product sells for $100 in the US, and 100 in Europe. Demand is predicted to be 1000 units in the US and 1000 units in Europe. Exchange rates are uncertain, but follow a distribution as shown:

Scenario	- to -$ exchange rate ($/)	Probability
Euro depreciates	$0.80/	0.30
Euro stays constant	$1.00/	0.40
Euro appreciates	$1.20/	0.30

Assume that exchange rates are known AFTER capacity is chosen, but BEFORE product is produced and allocated between the two markets. What is the optimal capacity to build?