Why Will a Perfectly Competitive Firm Not Sell Its Product

question 108

Multiple Choice

Why will a perfectly competitive firm not sell its product below the prevailing market price?

• A)It faces inelastic demand.
• B)It can sell all it wishes at the market price.
• C)The sellers in the market have agreed to not sell below a specified price.
• D)Its costs would increase dramatically.
• E)This would lead to a price war among sellers.

---

Definitions:

Religious Practice

Activities or rituals performed as a part of the belief system of a religion.

Symbolic Indicators

Symbols or signs that convey specific cultural, social, or economic meanings within a particular context.

Social Class

can also be described as a hierarchical ranking within a society where individuals or groups are classified based on wealth, occupation, education, or other social indicators.

Occupation

A person's regular work or profession; an activity to which one devotes time or a role played in a societal and economic context.