In Competitive Price-Taker Markets, If One Firm Raises Its Price

question 155

Multiple Choice

In competitive price-taker markets, if one firm raises its price,

• A) others will follow
• B) that firm will increase its revenues
• C) that firm will lose revenues because other firms will not follow
• D) all consumers will be adversely affected
• E) the market demand curve will shift

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Definitions:

Francisco "Pancho" Villa

A prominent Mexican revolutionary general known for his role in the Mexican Revolution (1910-1920).

Peasant Insurgents

Individuals or groups from a rural or agricultural background who rebel against established authority or government, often due to grievances or oppression.

Latin American

Referring to countries in the Americas where Romance languages (primarily Spanish and Portuguese) are spoken.

Ottoman Empire

A former Turkish empire that was founded about 1300 by Osman and reached its peak during the 16th and 17th centuries.