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A Nash Equilibrium in game theory occurs when:

ANo player has an incentive to unilaterally change their chosen strategy
BBoth players achieve maximum theoretical payouts
CPlayers alternate choices in every round
DOne player forces the other to exit

Explanation

A Nash equilibrium is a stable state where no player can improve their payoff by unilaterally changing their strategy.

Submitted by: mcqstutor Team More Economics MCQs →

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