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Micah and Nahum are competitors in a local market. Each is trying to decide if it is better to advertise on TV, on radio, or
- Micah and Nahum are competitors in a local market. Each is trying to decide if it is better to advertise on TV, on radio, or not at all. If they both advertise on TV, each will earn a profit of $10,000. If they both advertise on radio, each will earn a profit of $14,000. If neither advertises at all, each will earn a profit of $20,000. If one advertises on TV and the other advertises on radio, then the one advertising on TV will earn $16,000 and the other will earn $6,000. If one advertises on TV and the other does not advertise, then the one advertising on TV will earn $30,000 and the other will earn $4,000. If one advertises on radio and the other does not advertise, then the one advertising on radio will earn $24,000 and the other will earn $8,000. If both follow their dominant strategy, then Micah will
A.advertise on TV and earn $10,000.
B.advertise on radio and earn $14,000.
C.not advertise at all and earn $20,000.
D.Micah and Nahum do not have dominant strategies.
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