Which of the following is true for a Nash equilibrium of a two-player game?
A. Given another player's strategy stipulated in that Nash equilibrium, a player cannot improve his welfare by changing his strategy, and a Nash equilibrium is always unique in real-world problems.
B. The joint payoffs of the two players are highest compared to other strategy pairs.
C. Given another player's strategy stipulated in that Nash equilibrium, a player cannot improve his welfare by changing his strategy.
D. A Nash equilibrium is always unique in real-world problems.
Answer: C
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The aggregate demand curve shows that, if other factors are held constant, a
A) higher price level results in a decrease in the quantity of real GDP demanded. B) higher price level results in an increase in the quantity of real GDP demanded. C) higher price level results in a lower interest rate. D) lower price level results in a higher interest rate.
A person will choose to buy a good as long as
A) marginal benefit is at least as great as price. B) consumer surplus is positive. C) marginal benefit is positive. D) consumer surplus is at least as great as price.
For the use of their capital in production, owners receive
a. wages. b. rent. c. interest. d. profit.
Consider a firm with the following cost information: ATC = $15, AVC = $12, and MC = $14 . If we know that this firm has decided to produce Q = 20 by following the rule to maximize profits or minimize losses, then the price of the output is:
a. $12. b. $14. c. $15. d. $20.