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).

Restaurant B

Restaurant A

Advertise

Don't Advertise

Advertise

25 (A)

25 (B)

60 (A)

20 (B)

Don't Advertise

20 (A)

60 (B)

50 (A)

50 (B)

a) Does Restaurant A have a dominant strategy? If yes, what is it? Explain. (2 marks)

a) Does Restaurant B have a dominant strategy? If yes, what is it? Explain. (2 marks)