Suppose two Bertrand price competitors have different constant marginal costs. In any simultaneous move Nash equilibrium, only the lower cost firm will produce.
Answer the following statement true (T) or false (F)
True
Rationale: If the higher cost firm ever sets a price below the price set by the lower cost firm, either the higher cost firm is making negative profits (and thus not best responding) or the lower cost firm could be making positive profit by underbidding the higher cost firm (and is thus not best-responding).
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Identify each of the following acts as representing either saving or investment
a. Fred uses some of his income to buy government bonds. b. Julie takes some of her income and buys mutual funds. c. Alex purchases a new truck for his delivery business using borrowed funds. d. Elaine uses some of her income to buy stock in a major corporation. e. Henrietta hires a builder to construct a new building for her bicycle shop.
Aid to Families with Dependent Children was a government program with the goal of:
A. economic growth. B. redistribution. C. social insurance. D. None of these is true.