The equilibrium price of a good sold in a competitive market is $10.If an individual firm decides to sell its product at a price higher than $10,________.

Question

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If an individual firm decides to sell its product at a price higher than the equilibrium price of $10, it will no longer be offering a competitive price. As a result, consumers will likely choose to purchase the product from another firm offering a lower price, causing the firm to lose its customers. Therefore, choice C is the best answer. Choices A and B are incorrect because raising the price of the product will not lead to an increase in profits or revenue if the demand for the product decreases. Choice D is also incorrect as the cost of production is not related to the price at which the product is sold.

The Equilibrium Price of a Good Sold in a Competitive