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Martha and Oleg Are Competitors in a Local Market and Each

Question 175

Multiple Choice

Martha and Oleg are competitors in a local market and each is trying to decide if it is worthwhile to advertise.If both of them advertise,each will earn a profit of $5,000.If neither of them advertise,each will earn a profit of $10,000.If one advertises and the other doesn't,then the one who advertises will earn a profit of $15,000 and the other will earn $7,000.To make the most money,Martha


A) should advertise, and she will earn $5,000.
B) should advertise, and she will earn $15,000.
C) should not advertise, and she will earn $10,000.
D) has no dominant strategy.

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