Final answer:
The statement that all Nash equilibria consist of dominant strategies is false, as a Nash equilibrium can exist without dominant strategies being present.
Step-by-step explanation:
The statement that all Nash equilibria consist of dominant strategies is false. A Nash equilibrium is a situation in a game in which each player is making the best decision that they can, taking into account the decisions of the other players.
It does not require each player's strategy to be dominant over others; rather, it's enough that no player has anything to gain by changing only their own strategy. A dominant strategy, on the other hand, is the best strategy for a player to follow regardless of the strategies chosen by other players.
While Nash equilibria can include dominant strategies, many Nash equilibria do not involve dominant strategies at all.