Business, 18.04.2020 05:18 gonzmari457
Big Cure and Little Cure are both pharmaceutical companies. Big Cure presently has a potential "blockbuster" drug before the Food and Drug Administration (FDA) waiting for approval. If approved, Big Cure's blockbuster drug will produce $1 billion in net income for Big Cure. Little Cure has ten separate, less important drugs before the FDA waiting for approval. If approved, each of Little Cure's drugs would produce $50 million in net income. The probability of the FDA approving a drug is 50%. What is the expected payoff for Little Cure's ten drugs? (2 points)
A) $250 million
B) $50 million
C) $1 billion
D) $0
Answers: 3
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Big Cure and Little Cure are both pharmaceutical companies. Big Cure presently has a potential "bloc...
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