Emily and Brooklyn are competitors in a local market.Each is trying to decide if it is better to advertise on TV,on radio,or not at all.If they both advertise on TV,each will earn a profit of $5000.If they both advertise on radio,each will earn a profit of $7000.If neither advertises at all,each will earn a profit of $10,000.If one advertises on TV and the other advertises on radio,then the one advertising on TV will earn $8000 and the other will earn $3000.If one advertises on TV and the other does not advertise,then the one advertising on TV will earn $15,000 and the other will earn $2000.If one advertises on radio and the other does not advertise,then the one advertising on radio will earn $12,000 and the other will earn $4000.If both follow their dominant strategy,what will Emily do and what will she earn
A) advertise on TV and earn $5000
B) advertise on radio and earn $7000
C) not advertise and earn $10,000
D) advertise on TV and earn $15,000
Correct Answer:
Verified
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