In a perfectly competitive market,an increase in output could be caused by

Question

Quizplus · Accepted Answer

In a perfectly competitive market, an increase in output can only occur if there is an increase in consumer demand. This is because in a perfectly competitive market, price is set by the intersection of demand and supply, and if there is an increase in output without an increase in demand, it would lead to an oversupply and a drop in price. Therefore, the only feasible option is an increase in consumer demand.

In a Perfectly Competitive Market,an Increase in Output Could Be