Why Does a Firm in a Competitive Industry Charge the Market

question 213

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 market power.
• C)The firm can only sell limited number of units of output, so it wants to sell at the market price in order to lower its costs.
• D)All of the above are correct.

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Definitions:

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A specialized hospital or health care wing dedicated to the care and treatment of older adults, focusing on geriatric medicine.

Functional Independent

The ability of an individual to perform daily activities without assistance.

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The period of recovery and regaining of health following illness, injury, or medical treatment.

Nursing Centre

A healthcare facility focused on providing nursing care and support services to patients.