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McLaren and Red Bull are competing for the Formula One Constructors' Championship and are deciding whether to increase their spending on their aerodynamic (aero) development.
McLaren and Red Bull are competing for the Formula One Constructors' Championship and are deciding whether to increase their spending on their aerodynamic (aero) development. The matrix displays the payoffs to the team that result from each possible choice. Note that, due to other factors, the payoffs are not symmetrical. Assume that each team's goal is to earn as many points as possible. What is the best response for McLaren ? Question 6 options: Their best response is to increase aero development spending, regardless of the other company's decision. Their best response is to increase spending if the other company increases spending and to not change spending if the other company does not change spending. Their best response is to leave aero development spending unchanged, regardless of the other company's actions. Their best response is to not change spending if the other company increases spending and to increase spending if the other company does not change spending
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