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Help please! As the manager of Smith Construction, you need to make a decision on the number of homes to build in a new residential

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Help please!

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As the manager of Smith Construction, you need to make a decision on the number of homes to build in a new residential area where you are the only builder. Unfortunately, you must build the homes before you learn how strong demand is for homes in this large neighborhood. There is a 60 percent chance of low demand and a 40 percent chance of high demand. The corresponding (inverse) demand functions for these two scenarios are P: 300,000 4000 and P: 500,000 2759, respectively. Your cost function is (.10) = 140,000 + 240,0000. How many new homes should you build. and what profits can you expect? Number of homes you should build: homes Profits you can expect: 93

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