A Perfectly Competitive Firm Can

question 272

Multiple Choice

A perfectly competitive firm can

• A) sell all of its output at the prevailing market price.
• B) set a higher price to customers who are willing to pay more.
• C) raise its price in order to increase its total revenue.
• D) sell additional output only by lowering its price.
• E) usually not sell all the output it produces, but still "over-produces" because there are some periods when it can sell the extra output at very profitable prices.