A Nash equilibrium is defined as

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A Nash equilibrium is a situation where each player in a game chooses the best strategy for themselves given the strategies chosen by the other players. It is a self-enforcing set of strategies, such that no player has an incentive to deviate from their chosen strategy, assuming that all other players stick to their strategies. Option A is incorrect because a cartel with strong penalties for cheaters is a form of collusion, which is not necessarily a Nash equilibrium. Option C is incorrect because making zero economic profit in the long run does not necessarily imply a Nash equilibrium. Option D is incorrect because each player does not necessarily take the action that is best for all players in a Nash equilibrium. Option E is incorrect because relying on other game players to realise the benefit of cooperation is not necessarily a Nash equilibrium.

A Nash Equilibrium Is Defined as