In a Nash equilibrium:

A All players maximize total welfare

B No player can improve their payoff by unilaterally changing their strategy

C All players cooperate

D One player dominates

✓ Correct Answer: Option B

Nash equilibrium: each player strategy is optimal given the other players strategies. No individual player has an incentive to deviate unilaterally.

💡 Why is B) the correct answer?

The correct answer to the question "In a Nash equilibrium:" is Option B: No player can improve their payoff by unilaterally changing their strategy.

The other options — A) All players maximize total welfare, C) All players cooperate, D) One player dominates — are incorrect for this Pre-MBA Exam Prep question. As explained above: Nash equilibrium: each player strategy is optimal given the other players strategies. No individual player has an incentive to deviate unilaterally.

📚 About This Pre-MBA Exam Prep Practice Question

This 3-level Pre-MBA Exam Prep question from the Economics topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free Pre-MBA Exam Prep practice test or use flashcards for spaced repetition review.

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In a Nash equilibrium:

✓ Correct Answer: Option B

📚 About This Pre-MBA Exam Prep Practice Question

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