Can a perfectly competitive business survive? General Motors is investing an additional $7 billion by 2025 to boost electric car production, the largest investment in its history. Once designed, cars can then be produced and sold at relatively low cost. (The Bolt starts at $26,595.)

i. If GM sells cars at marginal cost, will it be able to recoup its investment?

ii. If companies that invest in fixed costs cannot survive, can we have a productive economy?