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.This is a situation where there exists a

A) dominant strategy.
B) Nash equilibrium.
C) prisoner's dilemma.
D) collusive tendency.
E) dominant decision tree.