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Refer to the Normal-Form Game of Advertising Shown Below

Question 121

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 50 percent chance that the advertising game depicted in Figure 10-17 will end next period. The collusive agreement {(not advertise, not advertise) } is: A)  sustainable since $175 < $250. B)  unsustainable since $175 < $25. C)  sustainable since $20 > $50. D)  unsustainable since $350 > $50. Suppose there is a 50 percent chance that the advertising game depicted in Figure 10-17 will end next period. The collusive agreement {(not advertise, not advertise) } is:


A) sustainable since $175 < $250.
B) unsustainable since $175 < $25.
C) sustainable since $20 > $50.
D) unsustainable since $350 > $50.

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