In pure competition, if a firm raised its price above the market-clearing price, the firm would sell nothing.

Question

Quizplus · Accepted Answer

In pure competition, many firms sell identical products, and no single firm can influence the market price. If a firm raises its price above the market-clearing price, consumers will buy from other firms offering a lower price, resulting in no sales for the firm that increased its price.

In Pure Competition, If a Firm Raised Its Price Above