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Recent reports have shown that the streaming giant, Netflix, is losing subscribers and viewers of its programs. However, its rival, Hulu, just reported its highest
Recent reports have shown that the streaming giant, Netflix, is losing subscribers and viewers of its programs. However, its rival, Hulu, just reported its highest viewership ever with the premiere of The Kardashians. Both streamers are deciding on their advertising budgets for the second half of 2023. Each firm can either choose to \"maintain\" their current level of advertising or can \"increase" their current level of advertising. The payoffs associated with these decisions are shown in the matrix below. Hulu Increase ' ' Advertising Malntain Increase Advertising 100' 100 250' 70 Netix Maintain 90, 220 200, 200 Which of the following statements is true? O A. The Nash Equilibrium is for Netflix to maintain advertising and Hulu to maintain advertising. O B. The Nash Equilibrium is for Netflix to increase advertising and Hulu to increase advertising. O C. There are two Nash Equilibrium (Maintain, Increase) and (Increase, Maintain) O D. Neither firm has a dominant strategy, O Both A and D are true. O Both B and D are true
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