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Question & AnswerChoose the Best Answer
Gary's Gym will benefit from eFitness's reduced advertising, as this will likely increase its customer base.
Both Gary's Gym and eFitness will have the incentive to change their strategies, leading to a new equilibrium.
Gary's Gym will have no incentive to change its pricing strategy, even if eFitness changes its advertising budget.
The market will shift entirely to a new competitor, rendering both gyms unprofitable.
Understanding the Answer
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Answer
Detailed Explanation
Key Concepts
Nash Equilibrium and Strategy Adjustments
hard level question
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