The City of Dustin Is Going to Grant an Exclusive

question 83

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 $2,000,002 on lobbying while firm 2 spends $2,000,001,the expected profit to firm 1 is __________ and to firm 2 it is __________.

• A) $5 million;$0
• B) $0;$5 million
• C) $2.5 million;$2.5 million
• D) $499,998;-$2,000,001
• E) $2,999,998;-$2,000,001

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Definitions:

Iron

A chemical element with symbol Fe and atomic number 26, known for its high strength and magnetic properties.

Limiting Reactant

The reactant in a chemical reaction that limits the amount of product that can be formed because it is used up first.

Theoretical Yield

The maximum amount of product that can be generated from a given amount of reactants in a chemical reaction, under ideal conditions.

Limiting Reactant

The reactant in a chemical reaction that limits the amount of product that can be formed; the reaction stops when all of this reactant is consumed.