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.
The reason both firms will continue to escalate spending on lobbying efforts is because
A) those making the decision demand "gifts".
B) the CEO's of the two firms are rivals.
C) spending $1 more than your opponent means winning the contract.
D) the firms can pass the costs along to consumers.
Correct Answer:
Verified
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