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

question 117

Multiple Choice

Refer to the information provided in Table 14.6 below to answer the question that follows.
Table 14.6
B's Strategy
$$\begin{array} { l l l l } \hline & & \text { Advertise } & \text { Don't Advertise } \\\hline & & \text { A's profit } \$ 150 & \text { A's profit } \$ 400 \\& & \text { million } & \text { million } \\& & \text { B's profit } \$ 150 & \text { B's profit } \$ 100 \\ & \text { Advertise } & \text { million } & \text { million } \\\text { A's Strategy } & & & \\& & \text { A's profit } \$ 100 & \text { A's profit } \$ 200 \\& \text { Don't } & \text { million } & \text { million } \\& & \text { B'sprofit } \$ 400 & \text { B's profit } \$ 200 \\& \text { Advertise } & \text { million } & \text { million }\end{array}$$
-Refer to Table 14.6. 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).

---

Definitions:

Sense

A physiological capacity of organisms that provides data for perception, such as sight, sound, touch, taste, and smell.

Conditional Acceptance

An agreement or acceptance that is subject to specific conditions or requirements being met.

Genuineness

The quality of being authentic and sincere in one’s feelings, thoughts, and actions.

Empathic Understanding

The capacity to accurately comprehend and share another person’s emotional state or context, while recognizing its distinctiveness from one's own feelings.