Nash Equilibrium Is Represented by a Set of Moves in a Game

question 4

Multiple Choice

Nash equilibrium is represented by a set of moves in a game that ________.

• A)improves the firms' payoffs by changing the choice
• B)sustains an incentive to defect by changing the choice
• C)minimizes each firm's input based on the number of rivals
• D)maximizes each firm's payoff given the choices of rivals

---

Definitions:

Coefficient

A numerical or constant factor in a mathematical expression that multiplies the variable it is associated with.

Price Elasticity

The measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating the sensitivity of demand to price changes.

Vertical Straight Line

In the context of graphing, a line that runs straight up and down, parallel to the y-axis, representing an infinite or undefined slope.

Quantity Supplied

The level of a good or service that sellers are eager and able to provide for purchase at a set price over a given period.