Question: Please answer ASAP. Please explain in detailed. No hand written answer please. Thank you. Firm 8 Strategy Advertise Firm A Advertise 0,0 Don't Advertise -1


Please answer ASAP. Please explain in detailed. No hand written answer please. Thank you.


Firm 8 Strategy Advertise Firm A Advertise 0,0 Don't Advertise -1 50 Two cigarette manufacturers play the following simultaneous-move billboard advertising game. Profit payoffs for both companies are shown in the normal form game below. There is a 25 percent chance that the government will ban cigarette sales in any given year. If they collude and Firm A cheats, how much will Firm A earn in period 1? (Enter a numerical value as your answer with no decimal points. For example. if your answer is \"one hundred\" you need to type in \"100"). -"\"X What is the probability that the game will encl':I (Enter a numerical value as your answer with no decimal points. For example, if your answer is "one hundred percent" you need to type in \"100"). \"5/ D If they collude and Firm A cheats, what will be the profit for Firm A fo;r all periods? (Enter a numerical value as your answer with no decimal points. For example, if your answer is "one hundred" you need to type in \"100\"). Saw If they collude and Firm A cheats, what will he the profit for Firm A for all periods? (Enter a numerical value as your answer with no decimal points. For example. if your answer is "one hundred" you need to type in \"100"). \"5/ If they coilude. cooperate and Firm A does not cheat, what will be the profit for Firrn A for all periods? (Enter a numerical value as your answer with no decimal points. For example, if your answer is "one hundred" you need to type in "100"). D x Does Firm A have an incentive to cheat? {Type "yes" or "no\" for your response}. \"5/
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