Two firms compete in the breakfast cereal industry producing Rice Krinkles and Wheat Krinkles cereal, respectively. Each manufacturer must decide whether to promote its product with a large or small advertising budget. The potential profits for these firms are as follows (in millions of dollars):

Describe the nature of the mutual interdependence between the two firms. Is a Nash equilibriumevident?

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Firm A Wheat Krinkles Cereal Small Advertising Budget Large Advertising Budget Firm (A) $30 M Firm (A) Small Advertising Budget $50 M Firm (B) $50 M Firm (B) $100 M Firm B Rice Krinkles Cereal Firm (A) $140 M Firm (A) $150 M Large Advertising Budget Firm (B) $20 M Firm (B) $150 M