If one firm in a perfectly competitive market doubled its output, market
A) demand would double
B) demand would increase by 50 percent
C) supply would double
D) supply would increase by 50 percent
E) supply would not be appreciably affected

Question

Quizplus · Accepted Answer

In a perfectly competitive market, individual firms are price takers and have a relatively small market share. Therefore, if one firm doubled its output, it would not have a significant impact on the overall market supply due to the large number of firms in the market.

If One Firm in a Perfectly Competitive Market Doubled Its