Question: The payoff matrix below depicts the weekly profitability for two flower shops based on their decision to advertise. a . Suppose the firms are deciding

The payoff matrix below depicts the weekly profitability for two flower shops based on their decision to advertise.

.

Suppose the firms are deciding whether to advertise for a single week, making the decision independently and simultaneously, the likely outcome will be

The Rose Shop will advertise, but Stems, Inc. will not.

Stems, Inc. will advertise, but The Rose Shop will not.

both firms will advertise.

neither firm will advertise.

.

,

however, the firms are deciding whether to advertise each week for the foreseeable future, the likely repeated game outcome will be

The Rose Shop will advertise, but Stems, Inc. will not.

Stems, Inc. will advertise, but The Rose Shop will not.

both firms will advertise.

neither firm will advertise.

The payoff matrix below depicts the weekly

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