QUESTION $2$

Coca$-$Cola spends around $\backslash (\backslash$$ $3\backslash )$ billion per year in advertising $(\backslash (\backslash$mathrm$\{$AE$\}=\backslash )$ advertising expenditure$)$ with $\backslash (\backslash$$ $20\backslash )$ billion in annual profits. PepsiCo spends around $\backslash (\backslash$$ $2\mathrm{.}5\backslash )$ billion with $\backslash (\backslash$$ $16\mathrm{.}5\backslash )$ billion in profits. If both companies stopped advertising altogether, their profits would reduce by $\backslash (2\backslash \%\backslash )$ in lost customers but save the costs of advertising. However, if only one company reduces their advertising $($but the other does not$),$ the reduced$-$advertising company's profits would fall by $20\backslash \%$ and the other company's profits would rise by $\backslash (10\backslash \%\backslash )$ as they'd take away consumers from their competitor. This results in the following payoff matrix: