Question $5(10$ points $+5$ extra points$)$:

Consider two tutoring companies $($A and B$).$ Each company has at their disposal very effective, but very expensive marketing teams. Each company makes $\backslash (\backslash$$ $50,000\backslash )$ in revenue each year. If both $\backslash ($ A $\backslash )$ and $\backslash ($ B $\backslash )$ use their marketing team, it causes a spiral of competitive ads, and each will ultimately spend $\backslash (\backslash$$ $100,000\backslash )$ on marketing. If company $\backslash ($ A $\backslash )$ acts first, using its marketing team, while B does not, then B will lose $\backslash$$$30,000$ in revenue, and $\backslash ($ A $\backslash )$ will gain a net of $\backslash (\backslash$$ $10,000\backslash )$ in revenue after marketing costs. This effect is symmetric if $\backslash ($ B $\backslash )$ acts first. If both companies spend no money on marketing, their revenues are unaffected.

a$.(4$ points$)$ Clearly state the players and strategy sets.