A Nash equilibrium occurs when:
A) each firm is doing the best it can, given its opponents' actions.
B) each firm chooses the strategy that maximizes its minimum gain.
C) a player can choose a strategy that is optimal regardless of its rivals' actions.
D) there is no dominant firm in a market.

Question

Quizplus · Accepted Answer

A Nash equilibrium occurs when each firm is doing the best it can, given its opponents' actions. In other words, no firm can improve its own payoff by unilaterally changing its strategy, assuming the other firms' strategies remain unchanged.

A Nash Equilibrium Occurs When