Refer to the information provided in Table 14.5 below to answer the question that follows.
Table 14.5B's Strategy
?AdvertiseDon't Advertise??A's profit $200 millionA's profit $400 million?AdvertiseB's profit $200 millionB's profit $100 millionA's Strategy????Don'tA's profit $100 millionA's profit $150 million?AdvertiseB's profit $400 millionB's profit $150 millionRefer to Table 14.5. What is the Nash equilibrium in the game?

A. (Advertise, Advertise)
B. (Advertise, Don't Advertise)
C. (Don't Advertise, Don't Advertise)
D. (Don't Advertise, Advertise)


Answer: A

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