A Nash equilibrium occurs when
A) players choose their best strategy given the strategies chosen by others.
B) the efficient allocation of resources is achieved by setting marginal revenue equal to marginal cost.
C) a monopolist is forced to produce the efficient level of output.
D) oligopolists cooperate with each other.

Question

Quizplus · Accepted Answer

Nash equilibrium is a situation where each player chooses their best strategy given the strategies chosen by the other players. It is a stable state where no player can benefit by changing their strategy unilaterally.

A Nash Equilibrium Occurs When