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. Firm A?s dominant strategy is
A. to not advertise.
B. dependent on what Firm B does.
C. to advertise.
D. indeterminate from this information, as no information is provided on Firm A?s risk preference.
Answer: C
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