Respuesta :
Answer:
D. Advertise on radio and earn $14,000
Explanation:
Dominant strategy is the strategy that will still be better than the strategy of a competitor regardless of whatever that competitor does.
We are told that both Juan Pablo and Zak follow their dominant strategy. From the question, the dominant strategy is when they both advertise on radio because they each get a profit of $14,000 compared to $8000 when they both advertise on radio. So when they both advertise on TV is more lucrative and therefore it's the dominant strategy for both of them. Therefore, in conclusion, I will advise Jan Pablo should advertise on radio and earn a profit of $14000 as his dominant strategy
