If two firms believe that advertising shifts sales from one company to another, a cooperative solution would be for both firms to:

Question

Quizplus · Accepted Answer

If two firms believe that advertising merely shifts sales from one to another without growing the overall market, a cooperative solution to avoid unnecessary costs would be for both firms to not advertise. This way, they can potentially maintain their market shares without incurring the high costs associated with advertising.

If Two Firms Believe That Advertising Shifts Sales from One