If a Firm in a Perfectly Competitive Industry Lowers Its

question 341

Multiple Choice

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.

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Definitions:

Stress Benefits

Highlighting the advantages or positive aspects of a product, service, or situation to persuade or inform an audience.

Direct Approach

A communication strategy where the main point or request is stated at the beginning, followed by supporting details.

Automated Applicant Tracking System

A software application that enables the electronic handling of recruitment needs, streamlining the hiring process by sorting through applicants automatically.

Effective Closing

The part of a communication (such as a speech, letter, or email) that is designed to conclude the message strongly and leave a lasting impression.