Suppose a firm makes a product whose price decreases as the output increases.The firm is in a market with many other firms.It is most likely that the firm:
A)is a monopoly
B)makes a product that is identical to the other firms, hence is in a competitive market
C)makes a similar product to others, hence is in a monopolistically competitive market
D)makes zero economic profit in the long run

Question

Quizplus · Accepted Answer

In a competitive market, firms are price takers, and the price decreases as output increases due to the law of supply and demand. The firm makes a product identical to others, leading to perfect competition.

Suppose a Firm Makes a Product Whose Price Decreases as the Output