Which of the Following Is True

question 32

Multiple Choice

Which of the following is true?

• A) In a one-shot game, a collusive strategy always represents a Nash equilibrium.
• B) A perfect equilibrium occurs when each player is doing the best he can regardless of what the other player is doing.
• C) Each Nash equilibrium is a perfect equilibrium.
• D) Every perfect equilibrium is a Nash equilibrium.

---

Definitions:

Cumulative Cash Surplus

Cumulative Cash Surplus represents the total amount of cash that exceeds the expenses over a period, indicating a company's financial health and ability to finance its operations.

Cash Balance

The amount of cash a company has on hand at any given time, reflecting its immediate liquidity position.

Capital Expenditure

Funds used by an organization to acquire or upgrade physical assets to improve its long-term capacity and efficiency.