Chrissy and Marvin Are Competitors in a Local Market and Each

Chrissy and Marvin 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 $10,000. If neither of them advertise, each will earn a profit of $20,000. If one advertises and the other doesn't, then the one who advertises will earn a profit of $30,000 and the other will earn $14,000. To earn the highest profit, Chrissy

A) should advertise, and she will earn $10,000.
B) should advertise, and she will earn $30,000.
C) should not advertise, and she will earn 20,000.
D) has no dominant strategy.

Correct Answer:

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