Assume that there is a fixed rate of interest on contracts for borrowers and lenders. If unanticipated inflation occurs in the economy, then:

One of the primary sources of diseconomies of scale is the inefficiencies associated with managing large scale operations

Indicate whether the statement is true or false

In the Bertrand model with homogeneous products,

A) the firm that sets the lower price will capture all of the market. B) the Nash equilibrium is the competitive outcome. C) both firms set price equal to marginal cost. D) all of the above E) the outcome is inconclusive.