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Suppose the Equilibrium Price in a Perfectly Competitive Industry Is

Question 119

Multiple Choice

Suppose the equilibrium price in a perfectly competitive industry is $100 and a firm in the industry charges $112.Which of the following will happen?


A) The firm will not sell any of its output.
B) The firm will sell more output than its competitors.
C) The firm's profits will increase.
D) The firm's revenue will increase.
E) The firm will gradually take over the entire industry.

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