Multiple Choice
Why is a "Nash equilibrium" called an equilibrium?
A) The market is at maximum profits, with quantity demanded equal to supply.
B) No players can do better by changing his or her own choice alone, so the situation is relatively stable.
C) It overcomes market failure to provide the optimum social welfare outcome.
D) Costs are minimized, and profits are maximized.
Correct Answer:
Verified
Correct Answer:
Verified
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