Suppose the Equilibrium Price in a Perfectly Competitive Industry Is

question 175

Multiple Choice

Suppose the equilibrium price in a perfectly competitive industry is $15 and a firm in the industry charges $21.Which of the following will happen?

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

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Definitions:

Environment Factors

Elements in the external surroundings that can influence an organism's or entity's ability to thrive, including both natural and man-made conditions.

Balanced Scorecard

A strategic planning and management system used by organizations to communicate what they are trying to accomplish and to measure and align the performance of their resources.

Integrity Management

A framework for ensuring that organizational practices adhere to a set of ethical standards and principles.

Global Reporting Initiative

An international independent organization that helps businesses, governments, and other organizations understand and communicate their impacts on issues such as climate change, human rights, and corruption.