The City of Dustin Is Going to Grant an Exclusive

question 81

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 firm 1 spends $2 on lobbying and firm 2 spends $1 on lobbying,the expected profit to firm 1 is __________ and to firm 2 it is __________.

• A) $4,999,998;-$1
• B) $5 million;$0
• C) $2.5 million;$2.5 million
• D) $0;$5 million
• E) $5 million;-$1

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Definitions:

Cost Accounting System

A method of accounting that captures all costs associated with the production of goods or services to evaluate performance and make decisions.

Monitoring

Monitoring refers to the systematic process of observing, checking, and recording activities or data for a specific purpose, often to detect changes over time.

Planning Decisions

The process of making choices about the future direction and activities of an organization, often involving strategic and tactical goals.

Organization's Activities

The various tasks and operations carried out by a business or non-profit entity to achieve its goals and objectives.