As the equilibrium price falls in a perfectly competitive market, firms' ______ fall(s)and their profits _______.

Name: As the equilibrium price falls in a perfectly competitive market, firms' ______ fall(s)and their profits _______.
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Question

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In a perfectly competitive market, if the equilibrium price falls, firms' revenue decreases because they are selling their product at a lower price. Consequently, their profits also fall since they are earning less per unit sold.

As the Equilibrium Price Falls in a Perfectly Competitive Market