If an individual perfectly competitive firm charges a price ________ the industry equilibrium price while competitors charge the equilibrium price, the firm will sell all that it produces but forgo revenue that it could have had.
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 and must charge the industry equilibrium price. If a firm charges below this price, it will sell all it produces but will earn less revenue than it could have by charging the equilibrium price.

If an Individual Perfectly Competitive Firm Charges a Price ________