Suppose the Equilibrium Price in a Perfectly Competitive Industry Is

question 119

Multiple Choice

Suppose the equilibrium price in a perfectly competitive industry is $100 and a firm in the industry charges $112.Which of the following will happen?

• A)The firm will not sell any of its output.
• B)The firm will sell more output than its competitors.
• C)The firm's profits will increase.
• D)The firm's revenue will increase.
• E)The firm will gradually take over the entire industry.

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Definitions:

Fair Procedures

Practices and policies that are impartial, equitable, and just in decision-making processes or dispute resolutions.

Collective Information-processing Model

A model that describes how groups gather, share, and evaluate information to make decisions collectively.

Social Loafing

The phenomenon where individuals expend less effort when working in a group than when working alone.

Bay Of Pigs

The location of a failed invasion attempt by Cuban exiles, supported by the U.S. government, in 1961 aimed at overthrowing Fidel Castro's regime in Cuba.