In a two-player game, which of the following is a Nash equilibrium?
A) Each player chooses a strategy that is optimal given the other's choice.
B) The quantity supplied by one player is equal to the quantity demanded by the second player.
C) Both players have excess capacity.
D) Both players are duopolists in an oligopolistic industry.

Question

Quizplus · Accepted Answer

A Nash equilibrium occurs when each player chooses the best strategy they can, given the strategies chosen by the other players. This means each player's choice is optimal given the other's choice, fitting the description in option A. Options B, C, and D describe different economic or strategic situations that do not directly relate to the definition of a Nash equilibrium.

In a Two-Player Game, Which of the Following Is a Nash