Which of the Following Statements Is Incorrect

question 29

Multiple Choice

Which of the following statements is incorrect?

• A)A Nash equilibrium is a situation in which each player chooses their best strategy given the strategies chosen by the other players in the game.
• B)A Cournot equilibrium is an example of a Nash equilibrium.
• C)A Bertrand equilibrium is an example of a Nash equilibrium.
• D)A Nash equilibrium maximizes the aggregate payoffs of the players of the game.

---

Definitions:

CCA Class

Pertains to a classification system for tax purposes, grouping assets with similar characteristics for capital cost allowance claims in Canada.

Net Present Value

Net present value is a financial metric that calculates the value of a series of cash flows by discounting them back to their present value using a specific rate.

Fixed Assets

Long-term tangible assets that are used in the operations of a business and not expected to be converted into cash in the short term, like buildings, machinery, and land.

Tax Shield Approach

A method of reducing taxable income through allowable deductions such as depreciation, resulting in lower tax payments.