Which of the Following Is True for a Nash Equilibrium

question 53

Multiple Choice

Which of the following is true for a Nash equilibrium of a two-player game?

• A) The joint payoffs of the two players are highest compared to other strategy pairs.
• B) Given another player's strategy stipulated in that Nash equilibrium, a player cannot improve his welfare by changing his strategy.
• C) A Nash equilibrium is always unique in real-world problems.
• D) Given another player's strategy stipulated in that Nash equilibrium, a player cannot improve his welfare by changing his strategy, and a Nash equilibrium is always unique in real-world problems.

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Definitions:

Dollar Amount

The value of a transaction or an item expressed in units of currency.

Allowance Method

An accounting technique that estimates and prepares for the amount of bad debts customers might not pay.

Direct Write-Off Method

The method of accounting for uncollectible accounts that recognizes the expense only when accounts are judged to be worthless.

Uncollectible Accounts

Funds that a company is unable to collect from its debtors, leading to recognition as a loss.