You are the CEO of a firm currently earning $10M/year in economic profits. Your head of marketing co

July 14, 2020/in Management file 1 /by admin

You are the CEO of a firm currently earning $10M/year in economic profits. Your head of marketing comes to you with what she calls a brilliant marketing campaign. The campaign costs $6M, and is a go-big-or-go-home campaign: there’s a 70% chance it will increase revenue by $9M, and a 30% chance it will increase revenue by only $4M. Do you approve the campaign?

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You are the CEO of a firm currently earning $10M/year in economic profits. Your head of marketing co

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