Alma,Marcus,and Carlos Are Competitors in a Local Market,and Each Is

question 14

Multiple Choice

Alma,Marcus,and Carlos are competitors in a local market,and each is trying to decide if it is worthwhile to advertise.If all of them advertise,each will earn a profit of $2000.If none of them advertise,each will earn a profit of $8000.If only one of them advertises,the one who advertises will earn a profit of $6000 and the other two will each earn $5000.If two of them advertise,those two will each earn a profit of $4000 and the other one will earn $3000.If all three follow their dominant strategy,what will Alma do and how much will she earn

• A)advertise and earn $2000
• B)advertise and earn $4000
• C)not advertise and earn $5000
• D)not advertise and earn $8000

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Definitions:

Rational Persuasion

The use of logical arguments or factual evidence to convince or influence others' attitudes, beliefs, or actions in a reasoned manner.

Empirical Data

Information obtained through observation and experimentation, forming the basis for conclusions or theories.

Rational Argument

A line of reasoning built upon logical premises and evidence, aiming to persuade or justify a conclusion.

Organizational Culture

The set of shared beliefs, values, norms, and practices that influences the way an organization's members interact and handle their business.