Why Does a Firm in a Competitive Industry Charge the Market

question 382

Multiple Choice

Why does a firm in a competitive industry charge the market price?

• A)If a firm charges less than the market price, it loses potential revenue.
• B)If a firm charges more than the market price, it loses all its customers to other firms.
• C)The firm can sell as many units of output as it wants to at the market price.
• D)All of the above are correct.

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Definitions:

Dissociative Fugue

A rare psychiatric disorder characterized by reversible amnesia for personal identity, including the memories, personality, and other identifying characteristics of individuality.

Wandering Away

The act of moving or traveling away from a designated area or from the intended path, often without a clear purpose or direction.

Identity Confusion

A situation where an individual is uncertain, unclear, or conflicted about their personal identity, roles, or life directions.

Neurotransmitters

Chemical substances in the nervous system that transmit signals from one neuron to another.