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Watch the video on Game Theory and the Tobacco Industry and respond to the question below.The payout matrix used in the Tobacco Industry video is

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Watch the video on Game Theory and the Tobacco Industry and respond to the question below.The payout matrix used in the Tobacco Industry video is below.Company A Company B Don't Invest in Advertising Invest in AdvertisingDon't Invest in Advertising $50m ; $50m $25m ; $60mInvest in Advertising $60m ; 25m $40m ; $40m

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QuickWrite Question: 1. Given your knowledge of Game Theory what selection would each company make without the ban on Advertising by the government and why? - What is the Dominant Strategy for each? 2. Why does the government ban on cigarette advertising "allow" each firm to increase their profits? 3. Assume that firms can change their decision when the obtain information of the decision may by their opponent. . Company A chooses to Advertise and Company B chooses to Not Advertise . According to the Nash Equilibrium will a firm change its decsion? . If so, name the firm and the change to be made. Why did they change? 4. Why does the government ban on Advertising benefit both firms? Would the firms support such a ban? Explain

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