Two Professors at a Nearby University Want to Co-Author a New

question 49

Multiple Choice

Two professors at a nearby university want to co-author a new textbook in either economics or statistics. They feel that if they write an economics book they have a 50% chance of placing it with a major publisher where it should ultimately sell about 40,000 copies. If they can't get a major publisher to take it, then they feel they have an 80% chance of placing it with a smaller publisher, with sales of 30,000 copies. On the other hand if they write a statistics book, they feel they have a 40% chance of placing it with a major publisher, and it should result in ultimate sales of about 50,000 copies. If they can't get a major publisher to take it, they feel they have a 50% chance of placing it with a smaller publisher, with ultimate sales of 35,000 copies.
What is the expected payoff for the decision to write the economics book?

• A) 50,000 copies
• B) 40,000 copies
• C) 32,000 copies
• D) 30,500 copies
• E) 10,500 copies

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Definitions:

Ego-oriented Goal

Objectives where the primary focus is on self-improvement relative to one's own past performances, emphasizing personal achievement and mastery.

Competitive

Having a strong desire to compete or succeed, often resulting in direct rivalry.

Controversial

Something that gives rise to public disagreement or debate, reflecting diverse opinions on a subject.

Aggressive

Behavior characterized by assertiveness, dominance, or hostility towards others, potentially resulting in physical or verbal confrontation.