George and Jerry are competitors in a local market. Each is trying to decide if it is better to advertise on TV, on radio, or not at all. If they both advertise on TV, each will earn a profit of $3,000 . If they both advertise on radio, each will earn a profit of $5,000 . If neither advertises at all, each will earn a profit of $10,000 . If one advertises on TV and the other advertises on radio,

then the one advertising on TV will earn $4,000 and the other will earn $2,000 . If one advertises on TV and the other does not advertise, then the one advertising on TV will earn $8,000 and the other will earn $5,000 . If one advertises on radio and the other does not advertise, then the one advertising on radio will earn $9,000 and the other will earn $6,000 . If both follow their dominant strategy, then George will
a. advertise on TV and earn $3,000.
b. advertise on radio and earn $5,000.
c. advertise on TV and earn $8,000.
d. not advertise and earn $10,000.


d

Economics

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Economics