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. In this situation:
A.
Pepsi's dominant strategy is to introduce new ads.
B.
Coca-Cola's dominant strategy is to avoid introducing new ads.
C.
if Pepsi introduces new ads, Coca-Cola's best response is to not introduce new ads.
D.
if Coca-Cola introduces new ads and Pepsi does not, then Pepsi will earn $180 million.