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

question 26

Multiple Choice

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

• A)An equilibrium outcome achieved by cooperation between players in the game.
• B)An outcome where each player's best strategy is to maintain its present behaviour given the present behaviour of the other players.
• 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 outcome where each player's strategy depends on the behaviour of its opponents.
• E)An equilibrium outcome that is achieved by collusion,and no party has an incentive to change their behaviour.

---

Definitions:

Alcoa Case

A 1945 case in which the courts ruled that the possession of monopoly power, no matter how reasonably that power had been used, was a violation of the antitrust laws; temporarily overturned the rule of reason applied in the U.S. Steel case.

Monopoly Structure

A market form where a single firm controls the entire market for a product or service, with no close substitutes.

Treble Damages

A legal principle allowing a court to triple the amount of the actual/compensatory damages to be awarded to a plaintiff.

Four-Firm Concentration

A measure of market concentration that evaluates the total market share of the four largest firms within an industry.