An individual seller in perfect competition will not sell at a price lower than the market price because
A)demand for the product will exceed supply.
B)the seller would start a price war.
C)the seller can sell any quantity she wants at the prevailing market price.
D)demand is perfectly inelastic.

Question

Quizplus · Accepted Answer

In perfect competition, the seller is a price taker and cannot influence the market price. The demand curve for the seller's product is perfectly elastic, meaning that they can sell any quantity they want at the market price. Therefore, there is no incentive for the seller to sell at a price lower than the prevailing market price.

An Individual Seller in Perfect Competition Will Not Sell at a Price