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T - Use the following normal-1orm game to answer the questions 1 and 16 delow. Firm A Strategy Advertise Firm B Advertise $10, $10
T - Use the following normal-1orm game to answer the questions 1 and 16 delow. Firm A Strategy Advertise Firm B Advertise $10, $10 Do Not Advertise $60-$10 $20, $20 Do Not Advertise -$10, $60 15. Suppose there is a 10% chance that the advertising game depicted in the above payoff matrix will end next period. What is the present value to Firms A of agreeing to the strategy (Do Not Advertise, Do Not Advertise)? A. $100 B. $150 C. $200 D. $220 16. The collusive agreement (Do Not Advertise, Do Not Advertise) is sustainable, as long as the f matrix will end next period is
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