A Nash equilibrium is
A. the same as a dominant strategy.
B. is the outcome where a player has selected her best strategy, given the choices of the other players.
C. occurs in a game when a cartel solution is reached.
D. occurs when one player can change her strategy and be better off.
Answer: B
You might also like to view...
In most business situations where firms compete, often they can escape the prisoner's dilemma and reach the most profitable outcome. Which of the following is a reason for this?
A) Most games are repeated games and firms can employ retaliation strategies against those who do not cooperate. B) Most games are one-shot games so firms learn from their mistakes. C) Firms are constantly improving their products and anticipating changing consumer tastes. D) Firms engage in aggressive advertising to overcome the barriers to loyalty.
If the government wants to regulate a natural monopoly, it will force the firm to set price equal to
A) average cost. B) marginal cost. C) marginal revenue. D) None of the above.