A Nash equilibrium ______. A. is the outcome that delivers ...

[yoooooman]

A Nash equilibrium ______.
 
  A. is the outcome that delivers maximum economic profit
  B. is the outcome in which each player takes the best action given the other player's action
  C. changes each time the game is played
  D. is the best possible outcome for the two players

Question 2

The price elasticity of demand for new stereos is 2 . Suppose a stereo store wishes to increase its sales by 15 percent. What should the firm do?
 
  What will be an ideal response?

[rachel]

Answer to Question 1

B Answer B is the definition of a Nash equilibrium.

Answer to Question 2

15/ percentage change in price = -2 . Therefore, the store should lower the price by 7.5 percent.

[yoooooman]

Excellent

[triiciiaa]

Thanks for the timely response, appreciate it