Two Competitive Firms Are Located Side by Side

Multiple Choice

Two competitive firms are located side by side.If firm A advertises,firm B will get new customers too,even though it does not have to pay for the advertising cost.The same scenario is true for A if B advertises.If both advertise,the amount of extra revenue generated would just offset the advertising costs.In such case,game theory suggests

A) that only A will advertise.
B) that only B will advertise.
C) that both A and B will advertise.
D) that neither A nor B will advertise.
E) nothing in terms of predicting the outcome of the game.