In a competitive industry
A)firms sell more if price is above marginal cost
B)firms sell more is price is below marginal cost
C)firms sell less if price is above marginal cost
D)none of the above

Question

In a competitive industry​
A)​firms sell more if price is above marginal cost
B)firms sell more is price is below marginal cost
C)firms sell less if price is above marginal cost
D)​none of the above

Quizplus · Accepted Answer

In a competitive industry, firms will sell more if the price is above marginal cost because it is profitable to produce and sell additional units when the price exceeds the cost of producing them.

In a Competitive Industry​

In a Competitive Industry