A) Complete table B ) They will choose option (Click to select) A,B,C,D

Assume that the only two firms in the industry, Sundance Inc. and Moondance Ltd., have entered a collusive agreement to reduce their advertising budgets to a minimum. The result is that they expect to make profits of $140 million each. However, if either of them cheats, the cheater will increase its profits by $40 million at a cost of $40 million to the other firm. If they both cheat, they will each reduce their profits by $20 million. Stick to agreement Cheat on agreement can A can a Stick to Sundance Cell C Cell D Cheat on Moondance: Moondance: agreement Sundance: Sundance: a. Complete the matrix by using the table above which shows the options facing the two firms. b. Which cell will be the likely outcome? They willchose option (Click to select)v