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Why Would a Firm in a Perfectly Competitive Market Always

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Essay

Why would a firm in a perfectly competitive market always choose to set its price equal to the current market price? If a firm set its price below the current market price, what effect would this have on the market?


Definitions:

Logical Operator

Used in scripting to allow for two or more conditions to be tested in one statement. Examples of logical operators include AND, NOT, and OR.

Expression

In computer science, an expression is a combination of values, variables, and operators, which are interpreted by a computer to produce another value.

Condition

A specific state of being or existence of something, often related to quality, appearance, or working order.

Comment

In a script, a comment is used to explain what some part of the code does, but it is ignored by the computer when running the script.

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