1. If Alistair assumes that Baine would increase its advertising budget, Alistair would:

2. Alistair's dominant strategy is:

3. Baine's dominant strategy is:

4. The Nash equilibrium in this game is:

5. When Baine leaves its advertising budget as is while Alistair increases that, Baine would earn a profit of $______.

Revenue and cost per unit $30 o 62 33 104 Quantity Figure 156 shows the cost and demand curves for a monopolist. Table 11-7 shows cost data for Lotus Lanterns, a producer of whimsical night lights. Complete the columns in the table below. Variable Quantity Fixed Cost Cost Total COSt Average Total f (dollars) Cost (dollars) Lanterns (dollars) (dollars) 75 200 170 370 4.93 80 200 230 430 5.36 90 200 7.67 100 200 810 115 200 11.8 117 200 1264 1464 12.5 120 200 1480 Alistair's (A) Choices Increase Leave advertising advertising budget budget as is increase advertising A: $30,000 profit A: $10,000 profit B: $30,000 profit B: $50,000 profit Choices Leave advertising A: $50,000 profit A: $40,000 profit midget as is B: $10,000 profit B: $40,000 prot Baine's (B) Alistair Luggage and Baine Baggage are the only rms selling luggage in the upscale town of Montecito. Each rm must decide on whether to increase its advertising budget to compete for customers. If one rm increases its advertising budget but the other does not, then the rm with the higher advertising budget will increase its prot. Looking at Table 14-4, showing the payoff matrix for this advertising game, answer the following questions