Use the Information for the Question(s)below

question 63

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 Food and Drug Administration (FDA) waiting for approval.If approved,Big Cure's blockbuster drug will produce $1 billion in net income for Big Cure.Little Cure has 10 separate less important drugs before the FDA 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 FDA approving a drug is 50%.
-What is the expected payoff for Big Cure's Blockbuster drug?

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

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Definitions:

Calories Needed

the amount of energy required by an individual to maintain their body's functions and perform daily activities.

Corpus Callosum

A thick band of nerve fibers that divides the cerebral cortex lobes into left and right hemispheres, facilitating communication between the two sides of the brain.

Nerve Fibers

Long, slender projections of nerve cells that transmit electrical impulses between parts of the nervous system and to muscles or organs.

Hemispheres

The two halves of the brain, the right and left hemispheres, each responsible for different functions and cognitive processes.