MegaCable and Acme Are Competing for an Exclusive Contract to Provide

question 75

Multiple Choice

MegaCable and Acme are competing for an exclusive contract to provide the city of Dustin with cable television for the next year. The firm that wins the contract will earn an economic profit of $5 million. The contact will be awarded to the firm that spends the most on lobbying. If both firms spend the same amount on lobbying, then the winner will be determined by a coin flip, so each will have a 50 percent chance of winning.  
Suppose MegaCable spends $2 on lobbying, and Acme spends $1 on lobbying. In this case, MegaCable's economic profit net of its lobbying costs will be ________, and Acme's economic profit net of its lobbying costs will be ________.

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

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Definitions:

Hierarchy Of Needs

A theory in psychology proposed by Abraham Maslow that suggests human motivation is driven by a hierarchy of needs, starting from basic physiological needs to self-actualization.

Physiological Needs

Basic physical requirements essential for survival, such as food, water, warmth, and shelter, as described in Maslow's hierarchy of needs.

Psychological Needs

Basic human requirements que are essential for mental health and well-being, such as autonomy, competence, and relatedness.

Ecology Of Eating

The study of how environmental factors influence eating habits and food consumption patterns.