A Dominant Strategy Equilibrium Exists in a Game When

question 46

Multiple Choice

A dominant strategy equilibrium exists in a game when:

• A) every player has no choice.
• B) every player makes the same choice, regardless of the action of the other players.
• C) each player makes the best choice, given the choice of the other player.
• D) no player is able to dictate the actions of any other player.

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Definitions:

Importer's Bank

A financial institution that facilitates transactions, including payment, for a company importing goods from another country.

Small Scale Industry

A sector comprising of businesses that operate on a small scale, typically characterized by low investment, fewer employees, and less revenue compared to large-scale industries.

Open Account

A form of payment in which an importer doesn’t pay for goods until after they have been received, creating an unfavorable balance of value for the exporter.

Less Favorable

Describes conditions or treatment that are comparatively disadvantageous or inferior to others.