Which of the Following Is Most Consistent with the Concept

question 49

Multiple Choice

Which of the following is most consistent with the concept of a Nash equilibrium?

• A)A firm chooses its strategy with regard to pricing in collusion with another firm.
• B)A player optimizes his/her outcome in a game by making his/her choice only after the other player has made his/her choice.
• C)A firm makes its choice to optimize output without concerning itself as to what other firms are doing.
• D)The players always optimize their level of output and no other variable.

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Definitions:

Confidence interval

An extent of values, obtained via sample statistical analysis, seen as likely embracing the unknown value of a population attribute.

Random sample

A subset of individuals chosen from a larger set where each member has an equal chance of being selected.

Population proportion

The proportion of a specific group or characteristic within a defined population.

Margin of error

An indicator of the precision of an estimate, representing the range within which the true population parameter is expected to lie with a certain confidence level.