A Nash equilibrium is an outcome where
A) both players are playing their best strategy, given the strategy chosen by the opponent.
B) both players are playing their best strategy, regardless of the strategy chosen by the opponent.
C) only one player can play his or her best strategy due to the strategy chosen by the opponent.
D) neither player has a best strategy to play.
A
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The short-run supply curve of a perfectly competitive firm is based primarily on its
A. MC curve. B. AVC curve. C. AFC curve. D. ATC curve.
Suppose two Cournot duopolist firms operate at zero marginal cost. The market demand is p = a - bQ. Each firm will produce
A) a/b. B) a/2b. C) a/3b. D) a/4b.
An economic theory: a. should be as detailed as possible in order to model the complexity of an economy
b. is an abstraction from reality. c. is only useful if it rests on realistic assumptions. d. is unrealistic and therefore of dubious usefulness in explaining what occurs in a complex economy.
An increase in short-run aggregate supply is
A) the result of an increase in the price level. B) represented by a movement up along the SRAS curve. C) represented by a rightward shift in the SRAS curve. D) both a and b E) both a and C