Suppose the Equilibrium Price in a Perfectly Competitive Industry Is

question 233

Multiple Choice

Suppose the equilibrium price in a perfectly competitive industry is $10 and a firm in the industry charges $12.Which of the following will happen?

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

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Definitions:

Share Of Customer

The amount of a customer’s total spending that a business captures in its sector, focusing on increasing purchases by existing customers rather than acquiring new ones.

CRM Efforts

Initiatives and practices relating to Customer Relationship Management, aimed at managing a company’s interaction with current and potential customers.

Lifetime Value

The total net profit a company anticipates earning from a customer throughout the entirety of their relationship.

Cognitive Dissonance

A psychological state experienced when an individual holds conflicting thoughts, beliefs, or attitudes, especially regarding their behavior and attitudes.