Question: Two firms compete in the breakfast cereal industry producing Rice Krinkles and Wheat Krinkles cereal, respectively. Each manufacturer must decide whether to promote its product with a large or small advertising budget. The potential profits for these firms are as follows (in millions of dollars):
![449_Interdependence.png](https://secure.tutorsglobe.com/CMSImages/449_Interdependence.png)
- Describe the nature of the mutual interdependence between the two firms. Is a Nash equilibrium evident?