Without enforcement, a contract
A) is binding.
B) is lateral in form.
C) is costless to enforce.
D) not really binding.
Question 2
Which of the following is false?
a. A Nash equilibrium can be a dominant strategy.
b. A Nash equilibrium maximizes a player's welfare, given the actions of its competitor, while a dominant strategy maximizes a player's welfare, regardless of the behavior of its competitor.
c. A Nash equilibrium is just another name for a dominant strategy.
d. A Nash equilibrium is a self-enforcing equilibrium.
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