If one perfectly competitive firm is the only one to raise its price above the market price,it will:

Question

Quizplus · Accepted Answer

In a perfectly competitive market, all firms are price takers and cannot raise their price above the market price without losing all their customers. Therefore, if one firm raises its price above the market price, it will not sell any output as consumers will switch to other firms selling at the market price.

If One Perfectly Competitive Firm Is the Only One to Raise