Use the Information for the Question(s) Below

question 22

Multiple Choice

Use the information for the question(s) below.
Big Cure and Little Cure are both pharmaceutical companies. Big Cure presently has a potential "blockbuster" drug before
the Therapeutic Goods Administration (TGA) waiting for approval. If approved, Big Cure's blockbuster drug will produce $1
billion in net income for Big Cure. Little Cure has ten separate, less important drugs before the TGA waiting for approval. If
approved, each of Little Cure's drugs would produce $100 million in net income for Little Cure. The probability of the TGA
approving a drug is 50%
-What is the expected payoff for Big Cure's Blockbuster drug?

• A) $1 billion
• B) $500 million
• C) $100 million
• D) $0

---

Definitions:

Foraging Ones

Refers to individuals or groups who rely on wild food resources for survival, typically through hunting, fishing, and gathering of wild plants.

Food Crops

Plants cultivated for consumption as food by humans or livestock, such as grains, vegetables, and fruits.

Corn

A cereal plant that yields large grains, or kernels, set in rows on a cob; widely cultivated as food crops for humans and as fodder for animals.

Wheat

A cereal grain, originally from the Levant region of the Near East and Ethiopian Highlands, which is a staple food in many parts of the world.