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

Question

Quizplus · Accepted Answer

A Nash equilibrium occurs when each firm in a game is doing the best it can given its opponents' actions. In other words, no player can improve their payoff by unilaterally changing their strategy, assuming that all other players are playing their equilibrium strategies.

A Nash Equilibrium Occurs When