If a price-taker firm selling in a competitive market offers its product at a higher price than others, it will
A) increase its profits.
B) maintain its profit base if the demand for the product is inelastic.
C) be able to expand output.
D) not be able to sell any output.

Question

Quizplus · Accepted Answer

In a competitive market, a price-taker firm cannot set prices above the market level because buyers will purchase from other sellers offering the same product at the market price.

If a Price-Taker Firm Selling in a Competitive Market Offers