In a two-player game, if both players choose strategies that result in the highest overall payoff where neither player can benefit from unilaterally changing their strategy, this outcome is known as what?

In game theory, when both players choose strategies that lead to the best overall outcome and neither player can do better by changing their strategy alone, this situation is called a Nash equilibrium. It means that both players have found a stable strategy where they are satisfied with their choices, and any change would not improve their situation. For example, imagine two friends deciding whether to watch a movie or play a game. If they both choose to watch a movie and enjoy it, neither will want to switch to playing a game because they would lose the enjoyment they already have. This balance helps explain how people make decisions in competitive situations where their choices affect each other.