Question 8

[Vik]

This is probably a simple question however,

for question 8, part 1.

Why was contract 1 chosen when the bogey golfers were indifferent to
the prices? If they are in different, would they not want to have the
option of having more (c2)? or are we assuming that b/c they do not go
as much, they will probably be fine with the lower option? If they
both take C2, profits will be higher no?

Any help would be appreciataed.

Vik