Use the Information for the Question(s)below

question 71

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 10 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 Little Cure's 10 drugs?

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

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Definitions:

Evolutionary Trend

A general direction of adaptive changes or evolutionary developments in a group over time.

Mesozoic Era

A geological era occurring between 252 to 66 million years ago, known as the age of reptiles, including dinosaurs.

Cycads

Ancient group of seed plants with a palm-like appearance, found in tropical and subtropical regions.

Ferns

Non-flowering vascular plants that reproduce via spores and possess fronds, common in moist, shady environments.