The City of Dustin Is Going to Grant an Exclusive

question 122

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.The reason firm 1 and firm 2 will continue to escalate spending on lobbying efforts is that

• A) those making the decision demand "gifts."
• B) the CEOs of the two firms are rivals.
• C) spending $1 more than your opponent means winning the contract.
• D) the firms can pass the cost along to consumers.
• E) it serves to maximize profit.

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Definitions:

Altar of Zeus

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The practice of representing individuals in art or literature as mythological figures or deities, often to communicate underlying messages or themes.

King Attalos I

A ruler of Pergamon in the 3rd century BC who bequeathed his kingdom to Rome, contributing to the spread of Hellenistic culture.

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