Scenario: Company a and Company B Are Considering Spending a Certain

question 56

Multiple Choice

Scenario: Company A and Company B are considering spending a certain sum of money to advertise their new range of products. If Company A chooses to advertise while Company B does not, Company A's annual sales will increase by $5 million, while Company B's sales will remain unchanged. If Company B chooses to advertise while Company A does not, Company B's annual sales will increase by $5 million, while Company A will not experience any change in its sales. If both the companies decide to advertise, their sales will increase sales by $2 million each, and if neither of them spends on advertisement, their sales will remain unchanged.
-Refer to the scenario above.Which of the following is true?

• A) Company A should not advertise its products irrespective of what Company B does.
• B) Company B should not advertise if Company A decides to advertise its products.
• C) Company A should advertise if Company B decides to advertise its products.
• D) Company B should not advertise its product irrespective of what Company A does.

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Definitions:

Cochlear Nerve

A nerve responsible for transmitting auditory information from the cochlea of the inner ear to the brain.

Sensorineural Deafness

A type of hearing loss that occurs due to damage to the inner ear or to the pathway from the inner ear to the brain.

Hair Cells

Sensory cells located in the inner ear, responsible for converting sound waves into electrical signals that go to the brain.

Auditory Ossicles

Three small bones in the middle ear called the malleus, incus, and stapes, which transmit sound vibrations from the eardrum to the inner ear.