Dave and Andy are competitors in a local market. Each is trying to decide if it is better to advertise on TV, on radio, or not at all. If they both advertise on TV, each will earn a profit of $4,000. If they both advertise on radio, each will earn a profit of $7,000. If neither advertises at all, each will earn a profit of $10,000. If one advertises on TV and other advertises on radio, then the one advertising on TV will earn $6,000 and the other will earn $5,000. If one advertises on TV and the other does not advertise, then the one advertising on TV will earn $11,000 and the other will earn $2,000. If one advertises on radio and the other does not advertise, then the one advertising on radio will earn $12,000 and the other will earn $4,000. If both follow their dominant strategy, then Dave will _______.A. advertise on TV and earn $4,000. B. advertise on radio and earn $7,000. C. advertise on TV and earn $11,000. D. advertise on radio and earn $12,000. E. not advertise and earn $10,000.

The dominant strategy shall be the strategy that shall be to make efforts in advertisement so that public and the keen customers are aware of the respective brand of their products.

Dominant strategy is followed then both will advertise, accordingly if they both advertise through the television, the profit for both of them shall be less.

In case both advertise through radio both the parties shall earn $7,000 profit each.

They both shall choose this, as they know that the opponent will try to perform good and earn more, accordingly both will put efforts.