What Is TRUE of a Nash Equilibrium

question 7

Multiple Choice

What is TRUE of a Nash equilibrium?

• A) Both players achieve their highest possible payoff among all possible outcomes.
• B) Both players must have a dominant strategy.
• C) The outcome does not maximize all players' expected payoffs.
• D) No individual player can do better by unilaterally changing her or his mind.

---

Definitions:

Equal Capital Interests

A situation where all partners or owners have the same stake in the capital of a business.

Capital Balances

Refers to the amount of money in a company's accounts designated for the owners or partners, reflecting their stakes in the business.

Income Ratios

Financial metrics that compare different aspects of a company's income, such as net income to sales, to assess its financial performance and profitability.

Partnership Cash

Funds or capital held by a partnership, which is a business entity owned by two or more individuals.