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Please answer and show steps The following is a payoff matrix showing profit in millions of dollars when two companies simultaneously decide on various advertising budgets

Please answer and show steps!! The following is a payoff matrix showing profit in millions of dollars when two companies simultaneously decide on various advertising budgets ($1 million, $2 million, or $3 million) Question 1 In the first round of strategy elimination (when all three possible budgets are under consideration), which ad budget would the companies exclude? Select one: a. Papa Johns would eliminate $2 mill; Pizza Hut would eliminate $3 mill. b. Papa Johns would eliminate $3 mill; Pizza Hut would eliminate $1 mill. c. Papa Johns would eliminate $2 mill; Pizza Hut would eliminate $2 mill. d. Papa Johns would eliminate $1 mill; Pizza Hut would eliminate $3 mill. Question 2 After the first round of elimination (previous question), would either company make a second-round elimination? Select one: a. Papa Johns would eliminate $2 mill; Pizza Hut wouldn't eliminate either. b. Papa Johns would eliminate $1 mill; Pizza Hut would eliminate $2 mill. c. Neither company would eliminate in the second round. d. Papa Johns would eliminate $2 mill; Pizza Hut would eliminate $3 mill. Question 3 What would be the likely outcome of this simultaneous advertising decision (i.e. what ad budget would each company end up choosing)? Select one: a. Both would choose $3 mill. b. Papa Johns would choose $2 mill; Pizza Hut would choose $1 mill. c. Papa Johns would pick $1 mill; Pizza Hut would pick $2 mill. d. Papa Johns would choose $3 mill; Pizza Hut would choose $2 mill.

Apr 14 2020 View more View Less

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