Suppose MTN and Vodafone must decide whether to advertise their products to maximize profit.

If both MTN and Vodafone decide to advertise their products, each firm will earn a profit of $$30$ million $($due to the higher cost of advertisement$).$ If neither firm decides to advertise, each firm will earn $$50$ million. If one firm adopts the method of advertisement and the other firm does not, the adopting firm will earn a profit of $$60$ million and the other firm will earn $$20$ million.

a$)$ Represent this information in a normal form game.

b$)$ Does either firm have a dominant strategy? Explain your answer c$)$ Does each firm have a dominated strategy? If so$,$ what is this strategy d$)$ If you were a decision$-$maker at Vodafone, would you adopt the method of advertisement?

Explain your answer. What if you were a decision$-$maker at MTN$?$ e$)$ Determine the solution of the game. f$)$ Is the solution to this game a Nash equilibrium? Explain your answer. g$)$ Is the solution to the game sub$-$optimal? Explain your answer. h$)$ Is the game an example of a classic prisoners dilemma? Explain your answer. i$)$ What strategies do you think each firm will adopt if a collision is possible?