As Price Increases, Firms in a Perfectly Competitive Market Find

question 86

Multiple Choice

As price increases, firms in a perfectly competitive market find that it is:

• A)beneficial to produce more units of output.
• B)more difficult to sell their product.
• C)beneficial to produce fewer units of output.
• D)easier to sell their product.

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Definitions:

Opportunity Cost

The sacrifice of gains that could have been obtained from alternative choices when one is selected.

Tractors

Farm vehicles designed for high torque at low speeds, used primarily for hauling machinery and trailers in agricultural settings.

Bicycles

Human-powered, pedal-driven vehicles with two wheels attached to a frame, used for transportation, recreation, or sport.

Production

The process of creating goods and services from various input resources like labor, raw materials, and machinery.