In imperfect competition,a firm must increase the sales price to generate additional sales.

Question

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In imperfect competition, a firm may not have to increase the sales price to generate additional sales as there may be other factors affecting demand such as branding, advertising, or product differentiation. However, in some cases, a firm may indeed have to increase the sales price to generate additional sales due to limited competition or market power.

In Imperfect Competition,a Firm Must Increase the Sales Price to Generate