If a perfectly competitive firm were to raise its price above the market price,it would

A) sell slightly less than at the market price.
B) sell significantly less than at the market price.
C) sell slightly more than at the market price.
D) sell nothing.

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Chris Martinez · Accepted Answer

Final Answer : D, Explanation :  In a perfectly competitive market, firms are price takers, meaning they must accept the market price. If a firm raises its price above the market level, consumers will buy from other firms offering the product at the market price, resulting in the firm selling nothing.

If a perfectly competitive firm were to raise its price above the market price,it would

A) sell slightly less than at the market price.
B) sell significantly less than at the market price.
C) sell slightly more than at the market price.
D) sell nothing.

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Learning Objectives

Related questions

If a perfectly competitive firm were to raise its price above the market price,it wouldA) sell slightly less than at the market price.B) sell significantly less than at the market price.C) sell slightly more than at the market price.D) sell nothing.

Definitions

Learning Objectives

Learning Objectives

Related questions

If a perfectly competitive firm were to raise its price above the market price,it would

A) sell slightly less than at the market price.
B) sell significantly less than at the market price.
C) sell slightly more than at the market price.
D) sell nothing.