Multiple Choice
Jet Cruises wants to prevent Easy Sail from entering the sailboat market. The above game tree illustrates the different strategi corresponding payoffs for the two firms. Both Jet Cruises and Easy Sail have the same strategies of advertising (Ad) or not ad (No Ad) . The payoffs represent net profit in millions.
-If Jet Cruises chooses to Ad and Easy Sail then chooses to No Ad, Jet Cruises earns million in net profit and Easy Sail earns million.
A) $2; $4
B) $10; $2
C) $5; $2
D) $4; $3
Correct Answer:
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