P-TV and QRS-TV Are Trying to Decide Whether to Air

Multiple Choice

P-TV and QRS-TV are trying to decide whether to air a sit-com or a reality show in a given time slot. Viewers like both sit-coms and reality shows, but sit-coms are more expensive to produce than reality shows since real actors need to be hired. QRS-TV makes its decision first, and then P-TV observes that choice before making its decision. Both stations know all of the information in the decision tree below. Given the information in this decision tree, if QRS-TV announces that it will air a sit-com, it can expect to:

A) lose $5 million.
B) earn $5 million.
C) earn $10 million.
D) earn $20 million.