Which of the Following Conditions Correctly Describes a Nash Equilibrium

question 64

Multiple Choice

Which of the following conditions correctly describes a Nash equilibrium when two firms are in the market?

• A)  ₁(s₁^*, s₂^*)   ₁(s₁, s₂^*) for all s₁.
• B)  ₁(s₁^*, s₂^*)   ₁(s₁, s₂^*) for all s₁ and  ₂(s₁^*, s₂^*)   ₂(s₁^*, s₂) for all s₂.
• C)  ₁(s₁^*, s₂^*)   ₂(s₁, s₂^*) for all s₁ and  ₂(s₁^*, s₂^*)   ₁(s₁^*, s₂) for all s₂.
• D)  ₁(s₁, s₂^*)   ₂(s₁^*, s₂^*) for all s₁ and  ₂(s₁^*, s₂)   ₁(s₁^*, s₂^*) for all s₂.

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Definitions:

Just-in-time System

A production strategy that strives to improve a business's return on investment by reducing in-process inventory and associated carrying costs, delivering materials just as they are needed in the production process.

Responsibility

A duty or obligation to perform or refrain from performing certain actions, often associated with a specific role or position.

Carrying Inventory

The total value of inventory a company holds at a given time, including goods ready for sale and raw materials.