10. The payoff matrix shown to the right describes the situation faced by two Firms in the same industry in deciding whether to advertise or not. If the Firms have to make a decision once and for all about advertising you should predict that:

both Firms 1 and 2 will play their dominant strategies and earn profits of 40 each.
Firm 1 will advertise and earn a profit of 50 while Firm 2 will not advertise and earn a profit of 14.
both Firms 1 and 2 will play their dominant strategies and earn profits of 20 each.
neither Firm has a dominant strategy so we cannot predict the outcome of the game.
the Firms will use a mixed strategy randomly choosing advertise or don't advertise.