Consider the following information for a simultaneous move game: If you advertise and your rival advertises, you each wi

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Consider the following information for a simultaneous move game:If you advertise and your rival advertises, you each will earn $5million in profits. If neither of you advertises, you will eachearn $10 million in profits. However, if one of you advertises andthe other does not, the firm that advertises will earn $15 millionand the non-advertising firm will earn $1 million. If you and yourrival plan to hand your business down to your children (and this"bequest" goes on forever), then a Nash equilibrium when theinterest rate is zero is Multiple Choice for each firm to notadvertise until the rival does and then to advertise forever. foryour firm to never advertise. for your firm to always advertisewhen your rival does. for each firm to advertise until the rivaldoes not advertise and then not to advertise forever.