Question

Suppose the owners of Lopes and HomeMax meet for a friendly game of golf one afternoon and happen to discuss a strategy to optimize growth-related profit. If they both agree to cooperate on a strategy that maximizes their joint profits, annual profit will grow by a. $0.4 million for Lopes and by $3.4 million for HomeMax. b. $1.0 million for Lopes and by $1.5 million for HomeMax. c. $2.0 million for Lopes and by $2.5 million for HomeMax. d. $3.2 million for Lopes and by $0.6 million for HomeMax.

Answer 1

Answer:

c. $2.0 million for Lopes and by $2.5 million for HomeMax.

Explanation:

For the problem above, the two organizations agreed to work on a particular project because they believed that they will benefit from the outcome of the project. Based on the available information provided in the question, the profit that Lopes will make yearly will increase by $2.0 million while that of HomeMax will increase by $2.5 million.