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:

Assessment Interview

A structured conversation used by practitioners to evaluate the condition, needs, or performance of an individual, often utilized in psychological and medical contexts.

Active Intervention

Proactive measures taken to address or resolve problems, typically in a clinical or therapeutic context, aiming for positive change.

Assessment Interview

A structured conversation between a healthcare provider and a patient aimed at gathering comprehensive information to evaluate the patient's health status or psychological condition.

Sudden Change

An abrupt alteration or transformation in a situation, behavior, or condition that occurs unexpectedly.