A pharmaceutical company executive has to decide whether to fund a new drug development project. For this project, a success would earn $90 million and a failure would cost $10 million in lost profits. At what probability of expected success should she fund the project?
a. 0.10
b. 0.20
c. 0.80
d. 0.90
a
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A country is likely to be better off in the long run if it pursues self sufficiency
Indicate whether the statement is true or false
The main fiscal policy challenge for the future in the United States is rising expenditure on
A) transfer programs. B) education. C) national defense. D) the net interest on the federal debt.
If five firms of similar sizes join to form a cartel, then it is most likely that
A) they will charge a common, lower market price. B) they will collectively produce less than before. C) all five firms will earn the same profits as before. D) all five firms as a group will have falling profits, but increased output.
In oligopoly, minimum efficient scale is large relative to the market
a. True b. False