Home

What is the correct answer?

4

Nash equilibrium says:

A. I am doing the best, I can given what you are doing

B. You are doing the best, you can given what I am doing

C. Both a and b

D. None of the above

Correct Answer :

C. Both a and b


Nash equilibrium? Nash equilibrium (named after John Forbes Nash, who proposed it) is a term used in game theory to describe equilibrium where each players strategy is optimal given the strategies of all other players. There is no unilateral profitable deviation from any of the players involved. In other words, no player in the game would take a different action as long as every other player remains the same. Nash equilibrium is self-enforcing b/c when players are at a Nash equilibrium, they have no desire to move b/c if they do, then they will be worse off.}

Related Questions

The feasible part of the demand curve for the monopolist who is charging… In second degree price discrimination, monopolist takes away : Who is the author of the famous work Asian Drama: An Enquiry intro the… In cournot model, each firm expects a reaction from his rival but the… The addition or increment to the total cost involvesd in expanding or… With firms having cost differences under perfect competition, a firm,… The long run average cost curve is: The model which gives us information about price and output changes in… When elasticity of demand is one (e=1), then following the formula MR=P[1-1/e],… A straight line, downward-sloping demand curve implies that, as price… The kinked demand curve comes into being where: When the level of optimal factor combination is over and more labor is… After reaching the saturation point consumption of additional units of… The partial equilibrium model keeps other things: The fixed cost of a firm: The Substitution Effect (S.E) is always: The slutsky demand curve includes: Contraction in demand occurs when: In the short-run, the competitive firm can maximize its profits (or minimize… Law of Variable Proportions is regarding in: Indifference curve represents: Identify the factor, which generally keeps the price elasticity of demand… The long-run average cost is based on the fact that: The ordinal approach was presented by: In the case where two commodities are good substitutes then cross elasticity… Average cost curve contains in it: The Strategy of Economic Development is the work of: The slope of the iso-cost line (budget line) is determined by: Monopolistic firm can fix: Isocost line shows the combinations of labor and capital where a firms…