Which of the Following Conditions Correctly Describes a Nash Equilibrium

question 64

Multiple Choice

Which of the following conditions correctly describes a Nash equilibrium when two firms are in the market?

• A)  ₁(s₁^*, s₂^*)   ₁(s₁, s₂^*) for all s₁.
• B)  ₁(s₁^*, s₂^*)   ₁(s₁, s₂^*) for all s₁ and  ₂(s₁^*, s₂^*)   ₂(s₁^*, s₂) for all s₂.
• C)  ₁(s₁^*, s₂^*)   ₂(s₁, s₂^*) for all s₁ and  ₂(s₁^*, s₂^*)   ₁(s₁^*, s₂) for all s₂.
• D)  ₁(s₁, s₂^*)   ₂(s₁^*, s₂^*) for all s₁ and  ₂(s₁^*, s₂)   ₁(s₁^*, s₂^*) for all s₂.

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