Which of the Following Statements Is the Best Description of a Nash

question 37

Multiple Choice

Which of the following statements is the best description of a Nash equilibrium?

• A)An outcome where each player's best strategy is to maintain its present behaviour given the present behaviour of the other players.
• B)An equilibrium outcome that is achieved by collusion,and no party has an incentive to change their behaviour.
• C)An outcome that is achieved when players in the game have jointly maximized profits and divided those profits according to market share of each player.
• D)An equilibrium outcome achieved by cooperation between players in the game.
• E)An outcome where each player's strategy depends on the behaviour of its opponents.

---

Definitions:

Factor Endowments

The quantity and quality of labor, land, and capital that a country possesses, influencing its economic productivity.

Labor

The application of human physical and intellectual labor in the manufacture and provision of goods and services.

Natural Resources

Materials or substances such as minerals, forests, water, and fertile land that exist in nature and can be used for economic gain.

Opportunity Cost

The act of losing possible benefits from other routes when a single path is chosen.