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.
Suppose MegaCable spends $2 on lobbying and Acme spends $1 on lobbying.If both firms know what the other is spending,the expected profit to MegaCable is __________ and to Acme it is __________.
A) $4,999,998;-$1
B) $5 million;-$1
C) $2.5 million;$2.5 million
D) 0;$5 million
Correct Answer:
Verified
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