In a Two­firm Industry, a Nash Equilibrium Occurs

question 42

Multiple Choice

In a two­firm industry, a Nash equilibrium occurs
Whenever:

• A)each firm makes decisions without consideration of the other firm's actions.
• B)the first firm makes decisions without consideration for the second firm's actions, whereas the second firm does
• Consider the first firm's actions.
• C)the second firm makes decisions without consideration for the first firm's actions, whereas the first firm does
• Consider the second firm's actions.
• D)each firm considers all possible actions by other firms and then chooses the best strategy.

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Definitions:

Instrumental Learning

A learning process where behavior is modified by its consequences, through rewards or punishments.

Operant Conditioning

A teaching technique that involves changing the power of a behavior by either reinforcing or disciplining.

Shaping

A method of teaching new behaviors by reinforcing successive approximations towards the desired behavior.

Likelihood

The probability or chance that a given event will occur.