Suppose the equilibrium price in a perfectly competitive industry is $100 and a firm in the industry charges $112.Which of the following will happen?
A) The firm will not sell any of its output.
B) The firm will sell more output than its competitors.
C) The firm's profits will increase.
D) The firm's revenue will increase.
E) The firm will gradually take over the entire industry.
Correct Answer:
Verified
Q24: Exhibit 8-1 Q25: Because it is small relative to the Q26: Perfectly competitive firms are price takers because Q27: ]The demand curve faced by a perfectly Q28: If every firm is a price taker, Q30: The demand curve facing a perfectly competitive Q31: A perfectly competitive firm is a price Q32: If a perfectly competitive firm raises its Q33: Which real-world market most closely approximates perfect Q34: Adam's Apples, a small firm supplying apples
A)each
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