In perfectly competitive markets, a firm can sell all that it wants at the market determined price, and so has no incentive to sell below that price.

Name: In perfectly competitive markets, a firm can sell all that it wants at the market determined price, and so has no incentive to sell below that price.
Brand: Quizplus
Rating: 5.0 (63 reviews)

Question

Quizplus · Accepted Answer

In perfectly competitive markets, firms are price takers and can sell any quantity at the market price, so selling below it would reduce their revenue without increasing sales.

In Perfectly Competitive Markets, a Firm Can Sell All That