Why Does a Firm in a Competitive Industry Charge the Market

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 market power.
C) The firm can only sell limited number of units of output, so it wants to sell at the market price in order to lower its costs.
D) All of the above are correct.