Happy Feet Wants to Prevent Best Nails from Entering the Nail

question 2

Multiple Choice

Happy Feet wants to prevent Best Nails from entering the nail salon market. The above game tree illustrates the different stra and corresponding payoffs for the two firms. Both Happy Feet and Best Nails have the same strategies of advertising (Ad) or advertising (No Ad) . The payoffs represent net profit in millions.
-If Happy Feet chooses to Ad and Best Nails then chooses to Ad, Happy Feet earns _ million in net profit and Best Nails earns million.

• A)$2; $3
• B)$5; $1
• C)$1; $4
• D)$4; $1