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KLM Company must decide whether to advertise its product or not. If its rival, Blue Corporation, decides to advertise its product, KLM will make $4 million if it advertises and $2 million if it does not advertise. If Blue Corporation does not advertise, KLM will make $5 million if it advertises and $3 million if it does not.
a. Is it possible to construct a payoff matrix? Explain.
b. Does KLM have a dominant strategy?
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