One implication of the shape of the demand curve that faces a perfectly competitive firm is that:
A) If the firm increases its price above the market price,it will earn higher revenue.
B) If the firm decreases its price below the market price,it will earn higher revenue.
C) If the firm increases its price above the market price,it will earn zero revenue.
D) The market is unable to reach a new equilibrium if prices change.
Correct Answer:
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