Assume that Bright Lights Inc.is part of a perfectly competitive market.If Bright Lights Inc.decides to raise their prices for the vanity light fixtures by 20%,which of the following is most likely to result?

Question

Quizplus · Accepted Answer

In a perfectly competitive market, firms are price takers, meaning they cannot set prices above the market equilibrium without losing customers. If Bright Lights Inc. raises prices, they will likely lose customers to competitors, resulting in less profit but not necessarily a change in output immediately.

Assume That Bright Lights Inc