Two firms compete by advertising. Given the payoff matrix to this advertising game, identify each firm's best response to its rival's possible actions. If Firm 2 does not advertise, then Firm 1 should and if Firm 2 advertises, then Firm 1 should Firm 1 If Firm 1 does not advertise, then Firm 2 should and if Firm 1 advertises, then Firm 2 should No Ads Advertise Does either firm have a dominant strategy? 5 Firm 1's dominant strategy is to and Firm 2's dominant strategy is to No Ads What is the Nash equilibrium? 10 O A. The Nash equilibrium is for both firms to advertise. Firm 2 5 O B. This game has no Nash equilibria. Advertise O C. The Nash equilibrium is for Firm 1 to advertise and Firm 2 to not advertise. O D. The Nash equilibrium is for both firms to not advertise 20 15 O E. The Nash equilibrium is for Firm 1 to not advertise and Firm 2 to advertise