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Econ help needed thanks Alistair's (A) Choices Increase Leave advertising advertising budget budget as is Increase advertising A: $30,000 profit A: $10,000 profit budget Baine's

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Econ help needed thanks

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Alistair's (A) Choices Increase Leave advertising advertising budget budget as is Increase advertising A: $30,000 profit A: $10,000 profit budget Baine's (B) B: $30,000 profit B: $50,000 profit Choices Leave advertising A: $50,000 profit A: $40,000 profit budget as is B: $10,000 profit B: $40,000 profit Alistair Luggage and Baine Baggage are the only firms selling luggage in the upscale town of Montecito. Each firm must decide on whether to increase its advertising budget to compete for customers. If one firm increases its advertising budget but the other does not, then the firm with the higher advertising budget will increase its profit. Looking at Table 14-4, showing the payoff matrix for this advertising game, answer the following questions. Paragraph v BI U 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 $

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