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.

---

Definitions:

Program Execution

The process by which a computer runs the instructions in a program or script, translating them into machine-level commands to be performed.

String Length

The number of characters contained in a string or text value.

Reserved Word

A word that is part of a programming language's vocabulary, restricted for use as identifiers because it has a special meaning.

Standard Output

The default output stream where a program can output data for display to the user, typically the computer screen.