In the case of global pollution, the Nash equilibrium shows that if
One nation does not regulate its pollution, other nations:
A)will have to regulate even more strictly.
B)will not regulate either because of international price competition.
C)will regulate but will bring charges in the WTO against the other.
D)will regulate, so they will not harm their own citizens.

Question

Quizplus · Accepted Answer

In a Nash equilibrium, each player's strategy is optimal given the strategies of others. If one nation does not regulate pollution, others may also choose not to regulate to remain competitive in international markets, leading to a situation where no nation regulates pollution.

In the Case of Global Pollution, the Nash Equilibrium Shows