As the equilibrium price falls in a perfectly competitive market,so do firms':

Question

Quizplus · Accepted Answer

In a perfectly competitive market, firms are price takers and cannot influence the market price. As the equilibrium price falls, firms must lower their prices as well to remain competitive. This leads to a decrease in their revenue, as they are receiving less money per unit sold. Additionally, their profits decrease, as revenue is decreasing and their costs are not decreasing at the same rate. Therefore, choice A is the best answer.

As the Equilibrium Price Falls in a Perfectly Competitive Market,so