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Two firms compete by simultaneously choosing price and then producing output for any sales they make at the posted prices. The firms each incur a
Two firms compete by simultaneously choosing price and then producing output for any sales they make at the posted prices. The firms each incur a small fixed cost of F whenever their output is positive. Group of answer choices If products are undifferentiated and marginal costs are equal, the firms will each make equal positive profits. If products are undifferentiated and marginal costs are NOT equal, neither firm can possibly make positive profits. If products are differentiated and marginal costs are equal, both firms could make positive profits. All of these responses are correct
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