Table 113 Firm A(Alistair's)and Firm B (Baine's)are the Only Firms

Multiple Choice

Table 11.3 Firm A(Alistair's) and Firm B (Baine's) are the only firms selling luggage in the upscale town of Adelaide.Each firm must decide on whether to increase its advertising spending to compete for customers.If one firm increases its advertising budget but the other does not, then the firm with the higher advertising budget will increase its profit.Table 11.3 shows the payoff matrix for this advertising game.
-Refer to Table 11.3.Does Alistair have a dominant strategy and, if so, what is it?

A) Yes, Alistair should increase its advertising budget.
B) Yes, Alistair should keep its advertising budget as is.
C) There are two dominant strategies: if Baine increases its advertising budget, then Alistair's best bet is to keep its budget the same, but if Baine does not increase its spending, then Alistair should raise its advertising budget.
D) No, there is no dominant strategy.