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d) If the two firms were owned by a single owner, and acted as a monopoly in this market, what advertising budget decisions would Alpha
d) If the two firms were owned by a single owner, and acted as a monopoly in this market, what advertising budget decisions would Alpha and Zeta make? What would be the monopoly profit (sum of the individual firms' profits) in this setting? Explain. (5 points) e) If Zeta could credibly threaten to run a High advertising budget, what is the maximum Zeta would be willing to pay Alpha in order to buy them out of the market and operate the two firms as a monopoly? What is the minimum that Alpha would be willing to accept to be bought out in this situation? Explain. Please recall that this is a single-play, non-repeated game, so no present valuation of future stream of profits is necessary
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