In order to sell another unit,an imperfectly competitive firm must
A) raise its price.
B) increase the value of its product.
C) lower its price.
D) lower its quality.
E) increase its advertising.

Question

Quizplus · Accepted Answer

In an imperfectly competitive market, where there are few competitors, lowering the price could help the firm sell another unit as it could attract more customers. Raising the price is not a good strategy as it could make the product less attractive to customers. Increasing the value of the product, improving quality, or increasing advertising could also help sell another unit, but these strategies often involve additional costs for the firm. Therefore, lowering the price is the best option for a firm in an imperfectly competitive market to sell another unit.

In Order to Sell Another Unit,an Imperfectly Competitive Firm Must