In perfect competition, if one firm raises its price,

Name: In perfect competition, if one firm raises its price,
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Question

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In perfect competition, all firms sell goods at the same price. If one firm raises its price, then the consumers will simply buy from the other firms at the original market price, leading to a decrease in demand for the firm that raised its price. As a result, the firm will lose revenues, and other firms are not likely to follow suit since they would be undercutting their own profits.

In Perfect Competition, If One Firm Raises Its Price