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

question 12

Multiple Choice

Refer to the information provided in Table 14.5 below to answer the question that follows.
Table 14.5
B's Strategy
$$\begin{array} { l l l l } \hline & & \text { Advertise } & \text { Don't Advertise } \\\hline & & \text { A's profit } \$ 200 & \text { A's profit } \$ 400 \\& & \text { million } & \text { million } \\& & \text { B's profit } \$ 200 & \text { B's profit } \$ 100 \\ & \text { Advertise } & \text { million } & \text { million } \\\text { A's Strategy } & & & \\& & \text { A's profit } \$ 100 & \text { A's profit } \$ 150 \\& \text { Don't } & \text { million } & \text { million } \\& & \text { B'sprofit } \$ 400 & \text { B's profit } \$ 150 \\& \text { Advertise } & \text { million } & \text { million }\end{array}$$
-Refer to Table 14.5. If both firms follow a maximin strategy, the equilibrium in the game is

• 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:

Mortgage

A legal agreement by which a bank, credit union, or other financial institution lends money at interest in exchange for taking title of the debtor's property, with the condition that the conveyance of the title becomes void upon the payment of the debt.

Lien

A legal right or interest that a creditor has in the debtor's property, generally lasting until the debt that it secures is satisfied.

Land

The surface of the earth, extending downward to the center and upward indefinitely into space, inclusive of natural resources and fixtures.

Deed of Trust

A legal document in some states that transfers the title of real property to a trustee as security for a loan until the grantor repays the lender.