If a Price-Taking Firm Selling in a Competitive Market Raises

question 188

Multiple Choice

If a price-taking firm selling in a competitive market raises the price of its product above the market-clearing price,it will:

• A) increase its profits.
• B) maintain its profit base since the demand for the product is inelastic.
• C) be able to increase its sales.
• D) not be able to sell any output.

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