86) Assume firm A and firm B are competing for customers and if they both advertise, they would each earn $30 million in profit. If neither advertises, they each earn $50 million in profits. But if one advertises and the other doesn't, the firm advertising earns $40 million in profit while the other earns $20 million in profit. What is each firm's dominant strategy and the result of this choice?
Answer: Each is driven to advertise and earn $30 million in profits. Diff: 3 Page Ref: 423 87) If deciding whether to build a large or small store, Walmart finds the rate of return it will experience is the same regardless or the existence of competition in the market, what should Walmart do?