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Refer to the Information Provided in Table 14 -Refer to Table 14

Question 191

Multiple Choice

Refer to the information provided in Table 14.6 below to answer the question that follows.
Table 14.6
B's Strategy
 Advertise  Don’t Advertise  A’s profit $150 A’s profit $400 million  million  B’s profit $150 B’s profit $100 Advertise  million  million  A’s Strategy  A’s profit $100 A’s profit $200 Don’t  million  million  B’sprofit $400 B’s profit $200 Advertise  million  million \begin{array} { l l l l } \hline & & \text { Advertise } & \text { Don't Advertise } \\\hline & & \text { A's profit } \$ 150 & \text { A's profit } \$ 400 \\& & \text { million } & \text { million } \\& & \text { B's profit } \$ 150 & \text { B's profit } \$ 100 \\ & \text { Advertise } & \text { million } & \text { million } \\\text { A's Strategy } & & & \\& & \text { A's profit } \$ 100 & \text { A's profit } \$ 200 \\& \text { Don't } & \text { million } & \text { million } \\& & \text { B'sprofit } \$ 400 & \text { B's profit } \$ 200 \\& \text { Advertise } & \text { million } & \text { million }\end{array}
-Refer to Table 14.6. Firm A?s dominant strategy is


A) to advertise.
B) to not advertise.
C) dependent on what Firm B does.
D) indeterminate from this information, as no information is provided on Firm A?s risk preference.

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