In a perfectly competitive market, a single firm that sets its price a small amount above the market price will do which of the following? a.Not sell any units at all b.Have lower revenues but receive zero economic profits c.Make lower profits than other firms, but the exact amount less depends on the elasticity of demand for the product d.Earn profits higher than other firms as long as the other firms continued to charge the market price
In a perfectly competitive market, a single firm that sets its price a small amount above the market price will do which of the following? a.Not sell any units at all b.Have lower revenues but receive zero economic profits c.Make lower profits than other firms, but the exact amount less depends on the elasticity of demand for the product d.Earn profits higher than other firms as long as the other firms continued to charge the market price
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter10: Prices, Output, And Strategy: Pure And Monopolistic Competition
Section: Chapter Questions
Problem 6E
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In a perfectly competitive market, a single firm that sets its price a small amount above the market price will do which of the following?
a.Not sell any units at all
b.Have lower revenues but receive zero economic profits
c.Make lower profits than other firms, but the exact amount less depends on the elasticity of demand for the product
d.Earn profits higher than other firms as long as the other firms continued to charge the market price
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