The City of Dustin Is Going to Grant an Exclusive

question 22

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.MegaCable and Acme are competing for the contract.The firm that spends the most on lobbying will be awarded the contract.
Suppose MegaCable spends $2 on lobbying and Acme spends $1 on lobbying.If both firms know what the other is spending,the expected profit to MegaCable is __________ and to Acme it is __________.

• 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:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.