What is true of equilibrium in the game in Scenario 13.14?
A) In equilibrium, both firms choose Q = 50.
B) In equilibrium, both firms choose Q = 100.
C) There are two equilibria, at Q = 50 and at Q = 100.
D) The only equilibrium is in mixed strategies.
E) The two equilibria are those associated with the (40,30 ) outcome and the (30,40 ) outcome.
B
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You probably know why firms advertise. But the incentives to advertise vary from market structure to market structure. In which market structure is there a weak, but still existent, reason to advertise?
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