If advertising by an individual firm does not add to total industry sales but merely attracts sales from other firms, firms would be better off not to advertise it pays one firm to advertise if the others do not advertising is like a prisoner's dilemma the worst situation is for every firm to advertise all of the above

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Q: Firm B Advertise Don't advertise $25 $15 $35 $80 $70 $50 $25 $60 Firm A Don't advertise Advertise

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