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Sienna and Connell Are Competitors in a Local Market and Each

Question 88

Multiple Choice

Sienna and Connell are competitors in a local market and each is trying to decide if it is worthwhile to advertise.If both of them advertise,each will earn a profit of $5000.If neither of them advertises,each will earn a profit of $10,000.If one advertises and the other doesn't,then the one who advertises will earn a profit of $15,000 and the other will earn $7000.To make the most money,what should Sienna do and what will she earn


A) She should advertise, and she will earn $5000.
B) She should not advertise, and she will earn $10,000.
C) She should advertise, and she will earn $15,000.
D) Martha has no strategy that guarantees her the most money.

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