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Anna,Bill,and Charles Are Competitors in a Local Market,and Each Is

Question 30

Multiple Choice

Anna,Bill,and Charles are competitors in a local market,and each is trying to decide if it is worthwhile to advertise.If all of them advertise,each will earn a profit of $5000.If none of them advertise,each will earn a profit of $8000.If only one of them advertises,the one who advertises will earn a profit of $10,000 and the other two will each earn $2000.If two of them advertise,those two will each earn a profit of $6000 and the other one will earn $1000.If all three follow their dominant strategy,what will Anna do and how much will she earn


A) advertise and earn $5000
B) advertise and earn $6000
C) not advertise and earn $8000
D) advertise and earn $10,000

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