All of the following statements except one are true regarding the effect of a price increase on a perfectly competitive firm.Which is the exception?

Question

Quizplus · Accepted Answer

A price increase will not cause total costs to decrease, as the firm will likely experience an increase in the cost of inputs and production expenses. Instead, the firm may experience a decrease in profitability if the price increase is not substantial enough to offset the increase in costs. A price increase may lead to an increase in production and a widened range of profitable outputs, as the firm is incentivized to produce more at the higher price point.

All of the Following Statements Except One Are True Regarding