Question: answer Consider the earlier question where two firms compete by choosing whether or not to advertise. In this version demand shifts out with advertising, similar

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Consider the earlier question where two firms compete by choosing whether or not to advertise. In this version demand shifts out with advertising, similar to Table 12.3b in your textbook. Profits for Firms Aand Bis givenby my = 10+ 6(X4 + Xp) + 2X4 3Xp and g =10+ 0(X4 + Xp) + 2Xp 3X 4, respectively, where X; = 0 indicates no advertising and X; = 1 indicates advertising. Let A = 8(X 4 + Xp) +2X4 3Xp be the additional earnings for Firm A if both firms advertise versus non advertise. Assuming @ = 1.5, is the prisoners' dilemma avoided in this game? If the answer is no or if the answer is ambiguous (i.e., involves comparing two identical values) then enter O. If the answer is yes calculate and then enter A (include two digits after the decimal)

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