Lee and Cody are playing a game in which Lee has the first move at A in the decision tree shown below. Once Lee has chosen either aggression or cooperation, Cody, who can see what Lee has chosen, must choose either aggression or cooperation at B or C. Both players know the payoffs at the end of each branch. 
In the equilibrium of this game, Lee chooses ________, and then Cody chooses ________.
A. aggression; cooperation
B. cooperation; cooperation
C. cooperation; aggression
D. aggression; aggression
Answer: A
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In a duopoly, if advertising only take customers from rivals rather than attracting new customers, then
A) the Nash equilibrium does not maximize the joint payoff B) the Nash equilibrium maximizes the joint payoff C) firms need to collude to maximize their joint payoff D) there is no dominant strategy