If the Demand Increases in a Perfectly Competitive Market,firms Will

question 145

Multiple Choice

If the demand increases in a perfectly competitive market,firms will likely:

• A) experience a loss due to increased competition.
• B) set prices artificially higher permanently.
• C) enter the market in hopes of capturing some profits.
• D) have to engage in more advertising in order to further stimulate the increase in demand.

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Definitions:

Yoplait

A global brand of yogurt produced by Yoplait, known for its wide range of flavoured dairy products.

Consumer Bias

The predispositions or subjective preferences that influence a consumer's purchasing behavior, often leading to irrational or suboptimal decision-making.

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Environmental Scanning

is a process that systematically surveys and interprets relevant data to identify external opportunities and threats that could influence future decisions and strategies.