If a Perfectly Competitive Firm Raises the Price It Charges

question 296

Multiple Choice

If a perfectly competitive firm raises the price it charges to consumers, which of the following is the most likely outcome?

• A)The firm's revenue will not change because some consumers will refuse to pay the higher price.
• B)The firm will not sell any output.
• C)The firm's total revenue will increase only if the demand for its product is inelastic.
• D)The firm's total revenue will increase only if the demand for its product is elastic.

---

Definitions:

Oligodendroglia

Glial cells in the CNS that myelinate axons.

Myelin

A fatty substance that surrounds the axon of some nerve cells, forming an insulating layer that is essential for the proper functioning of the nervous system, speeding up the transmission of nerve impulses.

Saltatory Conduction

A process whereby nerve impulses jump between gaps in the myelin sheath of neurons, speeding up signal transmission.

Nodes

Points of intersection or branching in a network or circuit, often used in the context of biological and technological systems.