Refer to the Normal-Form Game of Advertising Shown Below Consider the Advertising Game in Figure 10-17

Multiple Choice

Refer to the normal-form game of advertising shown below. $\begin{array}{c}\quad\quad\quad\quad\quad\quad\text { Firm B}\\\text { Firm A }\begin{array}{|l|l|l|} \hline & \text { Advertise } & \begin{array}{l}\text { Do Not } \\\text { Advertise }\end{array} \\\hline \text { Advertise } & \$ 0, \$ 0 & \$ 175, \$ 10 \\\hline \begin{array}{l}\text { Do Not } \\\text { Advertise }\end{array} & \$ 10, \$ 175 & \$ 125, \$ 125\\\hline\end{array}\end{array}$ Consider the advertising game in Figure 10-17.Firms A and B know the game will be played for exactly five periods.What is a Nash equilibrium to this game?

A) {advertise, do not advertise}
B) {advertise, advertise}
C) {do not advertise, do not advertise} provided the interest rate is less than 0.10 percent
D) {advertise, advertise} provided the interest rate is less than 0.50 percent