Because each perfectly competitive firm sells a product identical to that of the other firms
A) each firm tries to cut prices to increase its market share.
B) each firm's output is a perfect substitute for the output of any other firm.
C) each firm expects to earn some economic profit.
D) the demand for each firm's product is perfectly inelastic.
Correct Answer:
Verified
Q42: Economic profit is
A) included in the firm's
Q43: A competitive firm's total revenue minus its
Q44: A perfectly competitive firm's demand curve is
A)
Q45: Q46: In perfect competition, the elasticity of demand Q48: In perfect competition, an individual firm Q49: A perfectly competitive firm has a total Q50: In perfect competition, each individual firm faces Q51: In a perfectly competitive market, which of Q52: The goal of a perfectly competitive firm
A) faces
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