If two simultaneous move Bertrand price competitors have different constant marginal costs, then any price between their marginal costs could be a Nash equilibrium price.
Answer the following statement true (T) or false (F)
True
Rationale: So long as firm 1 prices just below firm 2 and below firm 2's MC, firm 2 is best responding by pricing just above firm 1. But firm 1 is best-responding only if it prices above its own MC.
Economics
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