Two firms compete by advertising. Given the profit matrix for this advertising game, identify each firm's best response to its rival's possible actions. a. Does either firm have a dominant strategy? What is the Nash equilibrium? Firm 2 Do Not Advertise Advertise Do Not Advertise 2 4 Firm 1 1 2 Advertise 0 3 0 1 b. How does your answer change if Firm 1 gets 3 instead of 1 when both firms advertise?

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