If an individual perfectly competitive firm charges a price above the industry equilibrium price, it will
A) sell all that it can produce and gain equal revenue with competitors.
B) sell all that it can produce and gain more revenue than competitors.
C) sell part of what it can produce and gain less revenue than competitors will.
D) not sell any of what it produces.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, firms are price takers, meaning they must accept the market price. If a firm tries to charge above the market equilibrium price, consumers will simply buy from other firms selling at the market price, leaving the firm that raised its price with no sales.

If an Individual Perfectly Competitive Firm Charges a Price Above