asked 125k views
3 votes
If you advertise and your rival advertises, you each will earn $4 million in profits. If neither of you advertises, you will each earn $10 million in profits. However, if one of you advertises and the other does not, the firm that advertises will earn $1 million and the non-advertising firm will earn $5 million. If you and your rival plan to be in business for only one year, the Nash equilibrium is: _______.

a. for your firm to advertise and the other not to advertise.
b. for neither firm to advertise.
c. for each firm to advertise.
d. None of the answers is correct.

asked
User Xn Dx
by
8.5k points

1 Answer

1 vote

Answer:

D. None of the answers is correct.

Step-by-step explanation:

answered
User Skomisa
by
7.9k points
Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.