Use the Information for the Question(s)below

question 13

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 Little Cure's ten drugs?

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

---

Definitions:

Insect Pheromones

Chemical substances secreted by insects to communicate with each other, often playing a role in mating and other behaviors.

Pheromones

Chemical substances produced and released into the environment by an animal, affecting the behavior or physiology of others of its species.

Biologically Magnified

Refers to the process by which toxic substances become more concentrated in organisms at higher levels of the food chain.

Pest

An organism that is considered troublesome or harmful to humans, their endeavors, such as agriculture, or to natural ecosystems.