Answer:
The Nash Equilibrium is a concept in game theory where the optimal outcome of a game is one where no player has an incentive to deviate from their chosen strategy after considering an opponent's choice. In other words, each player's strategy is optimal given what the other players are doing.
Step-by-step explanation:
However, a situation that is not a Nash Equilibrium. In a Nash Equilibrium, no firm would want to deviate from their current strategy given the rival's strategic choice. If a firm wants to deviate because the current strategy is not optimal given the rival's strategic choice, then that situation does not represent a Nash Equilibrium.