A Nash Equilibrium Occurs

question 228

Multiple Choice

A Nash equilibrium occurs

• A) when each player acts without considering the actions of the other player.
• B) when each player takes the best possible action given the action of the other player.
• C) only when players use the tit-for-tat strategy.
• D) only when the game is played in Nashville, TN.
• E) when each player takes the action that makes the combined payoff for all players as large as possible.

---

Definitions:

Marginal Rate of Substitution

The rate at which a consumer is willing to give up one good in exchange for an additional unit of another good, while keeping utility constant.

Wheat

A cereal grain, originally from the Levant region of the Near East but now cultivated worldwide, which is a staple food in many parts of the world.

Milk

A nutrient-rich liquid food produced in the mammary glands of mammals, commonly consumed by humans as a beverage or used in the production of various dairy products.

Pareto Optimal

A situation or allocation of resources from which it is impossible to reallocate to make any one individual better off without making at least one individual worse off.