The City of Dustin Is Going to Grant an Exclusive

question 24

Multiple Choice

The city of Dustin is going to grant an exclusive contract to provide cable TV for the next year.The economic profit of the contract is thought to be $5 million.Firm 1 and firm 2 are competing for the contract.The firm that spends the most on lobbying will be awarded the contract.
-Refer to the information above.If both firms refrain from spending anything on lobbying efforts,each firm's expected profit from the contract is

• A) $5 million.
• B) $2.5 million.
• C) $2 million.
• D) $1 million.
• E) impossible to calculate.

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Definitions:

Intoxication

A condition resulting from the excessive consumption of alcohol or drugs, impairing a person's cognitive and physical capacities.

Disaffirmed

The act of denying or rejecting a previously accepted contract or agreement, particularly by someone not legally bound by it.

Regulation Of Gambling

The laws, policies, and guidelines that govern gambling activities to ensure they are conducted fairly, responsibly, and free from criminal influence.

Implied Ratification

A form of agreement inferred from actions or behavior, indicating acceptance of previous actions that were not officially authorized.