In imperfect competition,________.
A) a firm will produce as many units as it can sell
B) the price a firm charges for a unit influences the quantity of units it sells
C) a firm does not have to reduce prices to generate additional sales
D) a firm should produce and sell units until the marginal revenue exceeds the marginal cost

Question

Quizplus · Accepted Answer

In imperfect competition, the price a firm charges for a unit influences the quantity of units it sells. Unlike in perfect competition, a firm may have some market power and may be able to charge a higher price without losing all its customers. However, if it charges too high a price, it will sell fewer units. Therefore, the firm must find the price that maximizes its profit, taking into account the demand for its product.

In Imperfect Competition,________