Ephemeral services corporation (esco) knows that nine other companies besides esco are bidding for a $900,000 government contract. each company has an equal chance of being awarded the contract. if esco has already spent $100,000 in developing its bidding proposal, what is its expected net profit? a. $10,000

b. $0

c. $100,000

d. $90,000

c. $100,000

Step-by-step explanation:

Calculation of the expected net profit of Ephemeral services corporation

Since we are been told that 9 other companies besides esco are as well bidding for the $900,000 government contract, it means we have to find the expected net profit by dividing 1 by 9×$900,000 .Thus ESCO can only expect to cover its sunk cost.

Hence ,

E(X) = (1/9) × $900,000

E(X)=0.111111111×$900,000

E(X)= $100,000

Therefore the expected net profit would be $100,000

according to this law, when unemployment goes up by 1%, gdp drops by 2%. in the question, unemployment rate goes from 2% to 5%, meaning unemployment goes up by 3%, so the gdp drops by 6%. thus the effect is a drop in gdp by 6%.

step-by-step explanation:

the answer is 21%.