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swat32
3 years ago
12

. You have room for up to two fruit-bearing trees in your garden. The fruit trees that can grow in your garden are either apple,

orange, or pear. The cost of maintenance is $100 for an apple tree, $70 for an orange tree, and $120 for a pear tree. Your food bill will be reduced by $130 for each apple tree you plant, by $145 for each pear tree you plant, and by $90 for each orange tree you plant. You care only about your total expenditure in making any decisions. (a) List the set of possible actions, related outcomes, and the payoff of each action/outcome. What is your optimal action
Business
1 answer:
Alina [70]3 years ago
8 0

Answer:

you should have 2 apple trees

Explanation:

<u>you can have</u>                           <u>savings</u>            <u>costs</u>            <u>net payoff</u>

no tree at all                                0                      0                     0

1 apple tree                               $130                $100                $30

1 orange tree                            $90                  $70                 $20

1 pear tree                                $145                 $120                $25

<u>2 apple trees                           $260               $200                $60</u>

2 orange trees                         $180                $140                 $40

2 pear trees                             $290               $240                $50

1 apple + 1 pear tree                $275               $220                $55

1 apple + 1 orange tree            $220               $170                 $50

1 orange + 1 pear tree              $235               $190                 $45

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