If Bertrand price competitors incur recurring fixed costs, it will still be a Nash equilibrium for price to equal marginal cost.
Answer the following statement true (T) or false (F)
False
Rationale: At price equal to marginal cost, the firms would make a negative profit (if marginal cost is constant) when there is a recurring fixed cost. They would therefore not be best-responding to each other by setting price equal to marginal cost.
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In a command economy
a. a dictator makes every economic decision b. owners can sell their resources to the highest bidder c. no individual or group coordinates the economy d. in theory, individual choices are reflected in collective decisions, and decisions are made by central planners e. public ownership of resources is combined with free markets to direct economic activity