Question

Neither Kenji nor Lucia has an incentive to increase output further, nor does either have an incentive to decrease output. This outcome is an example of:__________

Answer 1

Nash equilibrium

Step-by-step explanation:

The nash equilibrium is the equilibrium that deals in the game theory in which there is an optimal result of a game where no player has the incentive to deviate from the selected strategy after the party choice i.e. oppose

Therefore as per the given situation, the nash equilibrium is to be considered as an answer

hence, the same is to be considered