Assume that Bright Lights,Inc.is part of a perfectly competitive market.If Bright Lights,Inc.decides to raise their prices for vanity light fixtures by 20%,which of the following is most likely to result?

Question

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In a perfectly competitive market, firms are price takers, meaning they cannot set prices above the market equilibrium without losing customers to competitors. If Bright Lights, Inc. raises prices, consumers will simply buy from other firms offering lower prices, leading to a decrease in Bright Lights, Inc.'s sales and profits, but not necessarily affecting their production output immediately.

Assume That Bright Lights,Inc