Socially Optimum Equilibrium Quantity

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AP Microeconomics › Socially Optimum Equilibrium Quantity

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1

In a game with two or more players, a dominant strategy refers to a strategy that _________.

results in a larger payoff than any other strategy regardless of the strategies chosen by any other players.

results in a smaller payoff than any other strategy regardless of the strategies chosen by any other players.

results in a larger payoff than any other strategy except when another player has a dominant strategy as well.

results in a smaller payoff than any other strategy except when another player has a dominant strategy as well.

never results in a Nash equilibrium.

Explanation

The definition of a dominant strategy is one that leads to the highest payoff for a particular player, regardless of what other players do.

Nash equilibrium can be achieved as the result of playing a dominant strategy, eliminating answer choice "never results in Nash equilibrium".

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