Use the following to answer question:
Figure 12.1
-(Figure 12.1) The Nash equilibrium of this game is:
A) Low , Up.
B) Low , Down.
C) High , Up.
D) High , Down.

Question

Use the following to answer question:
Figure 12.1 
-(Figure 12.1) The Nash equilibrium of this game is:
A) Low , Up. 
B) Low , Down. 
C) High , Up. 
D) High , Down.

Quizplus · Accepted Answer

The Nash equilibrium is the point where neither player can improve their payoff by changing their strategy, given the strategy of the other player. In this game, the Nash equilibrium is (Low, Up), because if Player 1 plays Low, Player 2 cannot improve their payoff by playing Down, and if Player 2 plays Up, Player 1 cannot improve their payoff by playing High.

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