A Nash equilibrium is a situation in which each player in a game chooses the best strategy for themselves, given the strategies chosen by the other players. In other words, no player can improve their outcomes by changing their strategy, assuming that the other players' strategies remain the same. This concept applies to various types of games, not just oligopoly or duopoly.

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A Nash Equilibrium

Question 105

Multiple Choice

A Nash equilibrium

A) occurs when quantity demanded equals quantity supplied
B) exists when each player in a game is taking its best action -- given the actions taken by the other players
C) exists when each player in a game picks the collectively optimal strategy
D) is a kind of equilibrium that exists only in an oligopoly
E) is a kind of equilibrium that exists only in a duopoly

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