A Purely Competitive Firm Does Not Try to Sell More

question 101

Multiple Choice

A purely competitive firm does not try to sell more of its product by lowering its price below the market price because

• A) its competitors would not permit it.
• B) it can sell all it wants to at the market price.
• C) this would be considered unethical price chiseling.
• D) its demand curve is inelastic, so total revenue will decline.

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Definitions:

BASIC I.D.

An acronym in psychology that stands for Behavior, Affect, Sensation, Imagery, Cognition, Interpersonal relationships, and Drugs/biology, used to assess or plan treatment across multiple dimensions of a person's experience.

Affect

A term used in psychology to describe the experience of feeling or emotion.

Cognitions

Mental actions or processes of acquiring knowledge and understanding through thought, experience, and the senses.

Unified Protocol

A transdiagnostic cognitive-behavioral therapy approach designed to address a range of emotional disorders by targeting common underlying factors.