A Game in Which Each Player Adopts Its Dominant Strategy

question 61

Multiple Choice

A game in which each player adopts its dominant strategy

• A)will not lead to an equilibrium.
• B)must be a cooperative game.
• C)could result in a Nash equilibrium.
• D)can never result in a Nash equilibrium.

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Definitions:

Mutually Beneficial Trade

Trade that provides benefits to both parties involved, allowing them to attain a level of satisfaction or economic utility that would not be possible individually.

Specialization

Division of productive activities so that no one is self-sufficient.

Self-Sufficient

The ability of an individual, household, or nation to meet all their needs without external assistance or trade.

Standard of Living

A measure of the wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area.