Consider the decisions facing two cigarette companies, Benson & Hedges and Philip Morris. The following table shows how the profits of the two companies depends on their actions.

		Benson & Hedges' decision
		Advertise	Don't advertise
Philip Morris' Decision.	Advertise	Benson & Hedges get $3b profit Philip Morris get $3b profit	Benson & Hedges get $2b profit Philip Morris get $5b profit
	Don't advertise	Benson & Hedges get $5b profit Philip Morris get $2b profit	Benson & Hedges get $4b profit Philip Morris get $4b profit

a) What is the dominant strategy for Benson & Hedges? For Philip Morris? Explain.

b) Define Nash Equilibrium. What is the Nash Equilibrium for the decision?

c) Define prisoner's dilemma. Is this game a prisoner's dilemma? Explain.