Based on excercise (1) and (2), which of the following statement is TRUE?
A.
If firms decides advertising prior to price, they becomes cautious to use informative advertising that aggreviate the price competition.
B.
If firms decides advertising prior to price, they tend to increase informative advertising so as to intensify the 2nd stage price competition.
C.
If firms decides advertising prior to price, the advertising is at the same level as if they set price and advertising simultaneously. Therefore, the competition intensity is not affected by the timing of the game.