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Dovator [93]
3 years ago
11

MegaCable and Acme are competing for an exclusive contract to provide the city of Dustin with cable television for the next year

. The firm that wins the contract will earn an economic profit of $5 million. The contact will be awarded to the firm that spends the most on lobbying. If both firms spend the same amount on lobbying, then the winner will be determined by a coin flip, so each will have a 50 percent chance of winning. If both firms refrain from spending anything on lobbying, the expected profit from the contract is:
A)$5 million.
B)$2.5 million.
C)$2 million.
D)$1 million.
Business
1 answer:
raketka [301]3 years ago
5 0

Beatauwi Btrdssryyfzssrrtyxdci

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