Refer to Table 14-4. If Alistair assumes that Baine would increase its advertising budget, what should it do?
A) Alistair should not change its advertising budget.
B) Alistair should keep its own budget the same and allow Baine to incur the higher cost.
C) Being a duopolist, Alistair is not affected by Baine's choices because it has a secure 50 percent market share.
D) Alistair should also increase its advertising budget.
Question 2
Refer to Table 15-3. If Comcast maximizes its profits how much profit will it earn?
A) 84 B) 40
C) 4 D) Comcast will break even.
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