Which of the Following Statements Regarding a Competitive Firm Is

Multiple Choice

Which of the following statements regarding a competitive firm is correct?

A) Because each firm faces a downward sloping demand, if a firm increases its level of output, the firm will have to charge a lower price to sell the additional output.
B) If a firm raises its price, the firm may be able to increase its total revenue even though it will sell fewer units.
C) By lowering its price below the market price, the firm will benefit from selling more units at the lower price than it could have sold by charging the market price.
D) For all firms, average revenue equals the price of the good.