Question
3.Firms, A and B, are interested in expanding their market share through advertising. The table below depicts the profit of both firms with and without
3.Firms, A and B, are interested in expanding their market share through advertising. The table below depicts the profit of both firms with and without advertising.
Firm B
Advertise Don't Advertise
Advertise65 , 90185 , 60
Firm A
Don't Advertise 50, 205105 , 135
If collusion were not illegal, then it would be optimal
Select one:
A)For firm A not to advertise and for firm B to advertise
B)For firm A to advertise and for firm B to advertise
C)For firm A to advertise and for firm B not to advertise
D)For firm A not to advertise and for firm B not to advertise
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