Suppose the Equilibrium Price in a Perfectly Competitive Industry Is

question 175

Multiple Choice

Suppose the equilibrium price in a perfectly competitive industry is $15 and a firm in the industry charges $21.Which of the following will happen?

• A)The firm's profits will increase.
• B)The firm's revenue will increase.
• C)The firm will not sell any output.
• D)The firm will sell more output than its competitors.

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Definitions:

Hazardous Substances

Materials that can pose a risk to health, safety, property, or the environment.

Manifest

A detailed list or document showing the cargo, passengers, or equipment being loaded on a ship, airplane, or other vehicle.

Equilibrium Price

The equilibrium price where the supply of goods matches the demand for goods in the market.

Binding Price Ceiling

A legally established maximum price for a good or service that is lower than the equilibrium price, leading to shortages.