Question

Two companies, A and P, competing for the same product, are sharing a market. Each of these attempts to raise its share of the market. An advertising campaign by A can increase its share of the market by 7 per cent provided that P does nothing. Company P contemplates invoking a price cut if it
is worthwhile. The price cut shall cause a 5 per cent gain to the company P, but the gain is subject to
the condition that A takes no action. A price cut by P, accompanied by the advertising campaign of A
shall lead to a 2 per cent rise in P's share of market. No action on part of both the companies shall
leave the market share for them undisturbed at 40 : 60.
Write the information in form of a pay-off table and suggest the best strategy for each of the companies
to follow.​

Answer 1

Answer:

what is your question

Explanation:

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