What "balancing act" do imperfect competitors face as they set their product price?
A)If the price is too high, profit will be large as you sell a large quantity.
B)If the price is too high, profit will be small as you sell a small quantity.
C)If the price is too high, few firms produce and costs rise.
D)If the price is too high, many firms produce and costs rise.

Question

Quizplus · Accepted Answer

Imperfect competitors must balance their pricing because setting the price too high can lead to reduced sales volume, which in turn can decrease overall profit. This is because consumers may turn to substitutes or competitors offering lower prices, leading to a smaller quantity of the product being sold.

What "Balancing Act" Do Imperfect Competitors Face as They Set