Respuesta :
A subgame perfect equilibrium is always a Nash equilibrium. Thus, option (b) is correct.
What is equilibrium?
Equilibrium is the scientific word describing the harmony of force and action. The level of supply and demand must be equal in order for there to be an economic equilibrium. The cost remains steady. Three categories of equilibrium are frequently used: stable, unstable, and neutral. Chemistry and physics both employ the term “equilibrium.”
Because Nash equilibrium play occurs in every subgame, a perfect equilibrium in a subgame is always a Nash equilibrium. A subgame perfect equilibrium is a Nash equilibrium in an extensive form game. Not all games, but the majority of them only have one subgame with a perfect equilibrium.
Therefore, option (b) is correct.
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