Why Does a Firm in a Competitive Industry Charge the Market

question 382

Multiple Choice

Why does a firm in a competitive industry charge the market price?

• A)If a firm charges less than the market price, it loses potential revenue.
• B)If a firm charges more than the market price, it loses all its customers to other firms.
• C)The firm can sell as many units of output as it wants to at the market price.
• D)All of the above are correct.

Discuss the mechanisms of adjusting vision in different lighting conditions and the role of rods and cones.

Understand the principles of light and color perception, including wavelength and amplitude effects.

Grasp the structure and function of the human eye, specifically the roles of rods and cones.

Comprehend the psychological theories of vision, including trichromatic theory and opponent-process theory.