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International House of Pancakes ( IHOP ) is a U . S . - based multinational restaurant chain that specializes in breakfast food. Due to
International House of Pancakes IHOP is a USbased multinational restaurant chain that specializes in breakfast food. Due to declining sales, an IHOP franchisee must consider closing up to three of her least profitable locations. She meets with two consultants to discuss potential plans. The first consultant offers two plans. Plan A will result in losing two locations with certainty. Plan B has a twointhree chance of losing all locations but a oneinthree chance of losing no locations. The second consultant also offers two plans. Plan C keeps one location open with certainty. Plan D has a oneinthree chance of saving all three locations but a twointhree chance of saving no locations. If the franchisee applies the costbenefit principle, which combination of plans reflects a consistent decision?
Plan C and Plan A
Plan B and Plan A
Plan D and Plan A
Plan C and Plan B
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