If the equilibrium price in a perfectly competitive market for walnuts is $4.99 per pound,then an individual firm in this market can
A)Not sell additional walnuts unless the firm lowers its price.
B)Not sell additional walnuts at any price because the market is at equilibrium.
C)Sell an additional pound of walnuts at $4.99.

Question

Quizplus · Accepted Answer

Since the market is at equilibrium, the individual firm cannot increase the price of its walnuts without losing customers to other firms. However, the firm can sell additional pounds of walnuts at the equilibrium price of $4.99 per pound.

If the Equilibrium Price in a Perfectly Competitive Market for Walnuts