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.
If both firms refrain from spending anything on lobbying efforts,the expected profit of the contract is
A) $5 million.
B) $2.5 million.
C) $2 million.
D) $1 million.
Correct Answer:
Verified
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