Dave and Andy Are Competitors in a Local Market

Multiple Choice

Dave and Andy are competitors in a local market.Each is trying to decide if it is better to advertise on TV,on radio,or not at all.If they both advertise on TV,each will earn a profit of $4000.If they both advertise on radio,each will earn a profit of $7000.If neither advertises at all,each will earn a profit of $10,000.If one advertises on TV and other advertises on radio,then the one advertising on TV will earn $6000 and the other will earn $5000.If one advertises on TV and the other does not advertise,then the one advertising on TV will earn $11,000 and the other will earn $2000.If one advertises on radio and the other does not advertise,then the one advertising on radio will earn $12,000 and the other will earn $4000.If both follow their dominant strategy,what will Dave do and what will he earn

A) advertise on TV and earn $4000
B) advertise on radio and earn $7000
C) not advertise and earn $10,000
D) advertise on TV and earn $11,000