What Is a Nash Equilibrium

question 7

Multiple Choice

What is a Nash equilibrium?

• A)A state where each player is doing the best it can,given the strategies of all other players
• B)A state where the sum of all payoffs is maximized
• C)A state where the players always have achieved their best possible result
• D)A state at which the MR=MC for a firm
• E)A state where each player always must play a dominant strategy

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Definitions:

Inversely

A relationship between two variables in which one increases as the other decreases, often described by an inverse proportion or relation.

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X-intercepts

Points where a graph crosses the x-axis, representing the values of the variable when the output or y-value is zero.