QUESTION FIVE FIRM B FIRM A Advertise Do not advertise Advertise (4, 3) (5;1) Do not advertise (2,5 (3,2) a) What is the optimal strategy for Firm A if Firm B chooses to advertise? (2.5 Marks) b) What is the optimal strategy for Firm A if Firm B chooses not to advertise? (2.5 Marks) c) Regardless of what Firm B decides to do, what is the optimal strategy for Firm A? (2.5 Marks) d) What is the optimal strategy for Firm B if Firm A chooses to advertise (2.5 Marks) Page 5 of 6 CS Cam e) What is the optimal strategy for Firm B if Firm A chooses not to advertise (2.5 Marks) f) Regardless of what Firm A decides to do, what is the optimal strategy for Firm B (2.5 Marks) gi What is the dominant strategy for Firm A and the dominant strategy for Firm B (05 Marks) h) What is the Nash equilibrium for both firms? (05 Marks)