Table 14-4
The payoff matrix shown above assumes that Pepsi and Coca-Cola must decide whether to advertise their products.The matrix shows how much profit each firm will earn if it does or does not advertise.The amount of profit for one firm depends on whether the other firm advertises.
-Refer to Table 14-4.Which of the following statements is true?
A) Neither Pepsi nor Coca-Cola have a dominant strategy.
B) Pepsi's dominant strategy is to advertise; Coca-Cola's dominant strategy is to not advertise.
C) Coca-Cola's dominant strategy is to advertise; Pepsi's dominant strategy is to not advertise.
D) The dominant strategy for both firms is to advertise.
Correct Answer:
Verified
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