If an individual perfectly competitive firm charges a price ________ the industry equilibrium price while competitors charge the equilibrium price, the firm will not sell any of what it produces.
A) above
B) below
C) equal to
D) More information is needed to answer the question.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, firms are price takers, meaning they must accept the market price. If a firm charges above the market equilibrium price, consumers will buy from other firms charging the equilibrium price, leading to no sales for the firm charging more.

If an Individual Perfectly Competitive Firm Charges a Price ________