Two competing firms are deciding whether to launch a huge costly advertising campaign or maintain the status quo. Use the following matrix showing the profits of this duopoly to respond to the question.

FIRM X
FIRM Y		ADVERTISE	STATUS QUO
ADVERTISE	X: 4.5 MILLION Y: 4.5 MILLION	X: 1 MILLION Y: 6 MILLION
STATUS QUO	X: 6 MILLION Y: 1 MILLION	X: 5 MILLION Y: 5 MILLION

If these firms do not collude, the outcome will be:

1. both firms maintain the status quo
2. both firms advertise
3. firm X advertises and firm Y maintains the status quo
4. firm Y advertises and firm X maintains the status quo.
5. All of the above

Discuss and support your answer with concepts or theory in economics.