What Will Occur If a Price-Taking Firm Selling in a Competitive

question 41

Multiple Choice

What will occur if a price-taking firm selling in a competitive market raises the price of its product above the market-clearing price?

• A) It will maintain its profit base since the demand for the product is inelastic.
• B) It will be able to increase its sales.
• C) It will increase its profits.
• D) It will not be able to sell any output.

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