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Refer to the Normal-Form Game of Advertising Shown Below

Question 52

Multiple Choice

Refer to the normal-form game of advertising shown below. Refer to the normal-form game of advertising shown below. Suppose there is a 20 percent chance that the advertising game depicted in Figure 10-17 will end next period. What is the present value to firm B of cheating on the collusive strategy {do not advertise, do not advertise}? A) $0 B) $10 C) $125 D) $175 Suppose there is a 20 percent chance that the advertising game depicted in Figure 10-17 will end next period. What is the present value to firm B of cheating on the collusive strategy {do not advertise, do not advertise}?


A) $0
B) $10
C) $125
D) $175

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