A Nash Equilibrium Is Defined as

question 143

Multiple Choice

A Nash equilibrium is defined as

• A) making zero economic profit in the long run.
• B) forming a cartel with strong penalties for cheaters.
• C) relying on other game players to realize the benefit of cooperation.
• D) each player taking the best possible action given the action of the other player.
• E) each player taking the action that is best for all the players.

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Definitions:

Large Numbers of People

A phrase that refers to situations, studies, or phenomena involving a significant population size.

Normative Economic Statement

A statement expressing a value judgment about what ought to be, based on personal values or opinions rather than factual evidence.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, typically measured by gross domestic product (GDP) growth.

Unemployment Rate

The percentage of the labor force that is jobless and actively looking for employment.