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It Is Said That in a Perfectly Competitive Market, Raising

Question 1

Multiple Choice

It is said that in a perfectly competitive market, raising the price of a firm's product from the prevailing market price of $179.00 to $199.00, _______.


A) will likely cause the firm to reach its shutdown point immediately
B) will cause the firm to recover some of its opportunity costs
C) could likely result in a notable loss of sales to competitors
D) is a sure sign the firm is raising the given price in the market

Correct Answer:

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