Asked by
Nellie Grooms
on Nov 04, 2024
Verified
If a firm in a perfectly competitive industry lowers its price below the market price, its
A) total revenue will increase.
B) profit will decrease.
C) sales will drop to zero.
D) demand curve will become downward sloping.
Perfectly Competitive Industry
An industry structure where many firms sell identical products, entry and exit are easy, and no single seller controls the market price.
Market Price
The price at which a good or service can be bought or sold in a marketplace, determined by supply and demand.
- Highlight the particular factors that differentiate perfectly competitive markets from various other market arrangements.
Verified Answer
DM
Learning Objectives
- Highlight the particular factors that differentiate perfectly competitive markets from various other market arrangements.
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