When a Game Has More Than One Nash Equilibrium

question 58

Multiple Choice

When a game has more than one Nash equilibrium

• A) players will choose the strategies which maximize total welfare.
• B) players are likely to choose the strategies which minimize total welfare.
• C) it is difficult to predict which of the equilibria will occur or whether it is stable.
• D) it is difficult to predict which of the equilibria will occur but once one is reached it is likely to remain stable.

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Definitions:

Consumer Spending

The total amount of money spent by households in an economy on goods and services, excluding purchases of new housing.

Durable Goods

Products or goods that are intended to last and are characterized by their long usage or service life, such as appliances, cars, and furniture.

Credit Availabilities

The ease with which individuals and businesses can obtain loans or credit, influenced by financial market conditions and regulatory policies.

Capacity Utilization

A measure of how much of a firm's or economy's productive capacity is being used, typically expressed as a percentage.