"Kellogg's" and "General Mills" are two of the dominant breakfast cereal manufactures in the world. Among other advertising campaigns, each company is trying to sign an exclusive contract with an Olympian gold-medal athlete to appear on the cover of a cereal box. The contract is expected to be worth several millions of dollars!

Answer the following questions

a. How would you expect the pricing behavior of "Kellogg's" and "General Mills" to be? Justify your answer clearly.

b. What do you believe the rationale behind the generous advertising budgets these companies have?