Why Can't a Firm in a Perfectly Competitive Industry Charge

question 131

Multiple Choice

Why can't a firm in a perfectly competitive industry charge a price above the market-clearing price?

• A) Government-imposed price ceilings prevent prices from being raised.
• B) Perfectly competitive firms are price searchers.
• C) Numerous competitors produce the same product and charge the market price.
• D) Firms in a perfectly competitive industry face significant barriers to entry.

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Definitions:

Vaginismus

A condition involving involuntary contraction of the vaginal muscles, causing discomfort, pain, and difficulty with intercourse.

Dysfunction

The impaired or abnormal functioning of a bodily system or organ, often leading to various health issues.

Female Orgasmic Disorder

A dysfunction in which a woman persistently fails to reach orgasm, has very low intensity orgasms, or has very delayed orgasms.

Treatment

The management and care of a patient for the purpose of combating disease or disorder.