Refer to the Normal-Form Game of Advertising Shown Below

Multiple Choice

Refer to the normal-form game of advertising shown below. 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