In a small town, two restaurants compete in the market for pizza. Each restaurant must decide...

 

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In a small town, two restaurants compete in the market for pizza. Each restaurant must decide whether to advertise or not. The potential monthly profits for these firms are shown below (in thousands of dollars). 25 Advertise 25 Restaurant B 20 Don't Restaurant A Advertise Advertise 60 Refer to Figure 10-5. What is the cooperative outcome? Don't Advertise 60 20 50 50 In a small town, two restaurants compete in the market for pizza. Each restaurant must decide whether to advertise or not. The potential monthly profits for these firms are shown below (in thousands of dollars). 25 Advertise 25 Restaurant B 20 Don't Restaurant A Advertise Advertise 60 Refer to Figure 10-5. What is the cooperative outcome? Don't Advertise 60 20 50 50