Which of the Following Is True

question 104

Multiple Choice

Which of the following is true?

• A) A dominant strategy equilibrium always leads to the best outcome for each player.
• B) A dominant strategy equilibrium cannot be a Nash equilibrium.
• C) A dominant strategy equilibrium is a Nash equilibrium if each player chooses a strategy that is a best response to the strategies of others.
• D) A dominant strategy equilibrium occurs if the sum of the players' payoff is zero.

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Definitions:

Accepted

Acknowledged or approved, typically in the context of an agreement or transaction.

Discount Rate

The discount rate is the interest rate used in discounted cash flow (DCF) analysis to present value future cash flows and assess the attractiveness of an investment.

Net Present Value

An approach to determining the value of an investment by discounting future cash flows to their present value.

Cash Flows

The total amount of money being transferred into and out of a business, particularly regarding calculating its operating, investing, and financing activities.