In a competitive bidding scenario, if both firms have strategies where one always bids low and the other bids high, which of the following describes the situation when neither firm can benefit from changing their strategy unilaterally?

In a competitive bidding scenario, we have two firms, one that always bids low and another that always bids high. A Nash Equilibrium occurs when neither firm can improve its situation by changing its strategy alone. In this case, if the low bidder sticks to their strategy, they will win the contract but earn lower profits, while the high bidder, if they decide to bid lower, risks losing the contract entirely. Neither firm can benefit from changing their strategy because doing so would lead to worse outcomes for at least one of them. For example, if the low bidder suddenly decides to bid higher, they might lose the contract to the high bidder and end up worse off.