Coca-Cola New ads No new ads Pepsi New advertising campaign P: $80 mil C: $80 mil P: $180 mil C: $40 mil No new advertising campaign P: $40 mil C: $180 mil P: $100 mil C: $100 mil The manufacturers of Pepsi and Coca-Cola must each decide whether to launch new ad campaigns to advertise their respective soft drinks. The payoff matrix shows the profits earned from sales of Pepsi and Coca-Cola under alternative advertising scenarios. Refer to Exhibit 15-6. The Nash equilibrium outcome of the game depicted is:
A.
neither firm will conduct new advertising campaigns.
B.
both firms will conduct new advertising campaigns.
C.
Pepsi will conduct a new advertising campaign, and Coca-Cola will not.
D.
Coca-Cola will conduct a new advertising campaign and Pepsi will not.