Suppose That Each of the Two Firms in a Duopoly

question 28

Multiple Choice

Suppose that each of the two firms in a duopoly has the independent choice of advertising or not advertising.If neither advertises,each gets $10 million in profit;if both advertise,their profits will be $5 million each;and if one advertises while the other does not,the advertiser gets profit of $15 million and the other gets profit of $2 million.According to game theory,the Nash equilibrium is that:

• A)both may or may not advertise.
• B)one will advertise and the other will not.
• C)both will advertise.
• D)neither will advertise.

Understand how to utilize psychological principles, like Maslow's hierarchy of needs, to enhance the persuasiveness of a message.

Learn how to present factual evidence effectively in sales messages to create desire.

Gain knowledge about the structure of persuasive messages, including the use of inductive and deductive approaches.

Understand the importance of the closing section in persuasive messages and the need for a clear call to action.

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Definitions:

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The final amount at which a product or service is sold to the consumer.

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