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    Question

    If following is a payoff (profit) matrix for Firm  A

    and B. What should be strategy for Firm A. first number is for Firm A and second is for Firm B.  
    A Firm A should advertise only if Firm B is not Correct Answer Incorrect Answer
    B Firm A should advertise only if Firm B is advertising Correct Answer Incorrect Answer
    C Firm A should advertise whether firm B advertises or not Correct Answer Incorrect Answer
    D Firm A should not advertise in any case Correct Answer Incorrect Answer
    E The information is insufficient to say Correct Answer Incorrect Answer

    Solution

    Firm A should advertise whether firm B advertises or not because he gets higher payoff with advertising (4 and 5).s

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