Refer to the Information Provided in Table 14 -Refer to Table 14

question 57

Multiple Choice

Refer to the information provided in Table 14.2 below to answer the question that follows.
Table 14.2
B's Strategy
$$\begin{array} { l l l l } \hline & & { \text { Advertise } } & \text { Don't Advertise } \\\hline & & \text { A's profit } \$ 100 & \text { A's profit } \$ 200 \\& & \text { million } & \text { million } \\& & \text { B's profit } \$ 100 & \\& \text { Advertise } & \text { million } & \text { B's profit } \$ 50 \text { million } \\\text { A's Strategy } & & & \\& & \text { A's profit } \$ 50 & \text { A's profit } \$ 75 \\& \text { Don't } & \text { million } & \text { million } \\& & \text { B'sprofit } \$ 200 & \text { B's profit } \$ 75 \\& \text { Advertise } & \text { million } & \text { million }\end{array}$$
-Refer to Table 14.2. What is the Nash equilibrium in the game?

• A) (Advertise, Advertise)
• B) (Don't Advertise, Don't Advertise)
• C) (Don't Advertise, Advertise)
• D) (Advertise, Don't Advertise)

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Definitions:

Significant Effects

Impacts or changes that are considerable in size, importance, or consequence in a specific context or situation.

Individual Capacity

Acting on one’s own behalf, involving personal rights or responsibilities, rather than on behalf of a group or a corporate entity.

Liability

The state of being legally responsible for something, typically a debt or obligation.

Note

A financial instrument recognizing a debt or obligation, typically with the promise to repay the principal along with potential interest.