Multiple Choice
Why will a perfectly competitive firm not sell its product below the prevailing market price?
A) It faces inelastic demand.
B) It can sell all it wishes at the market price.
C) The sellers in the market have agreed to not sell below a specified price.
D) Its costs would increase dramatically.
E) This would lead to a price war among sellers.
Correct Answer:
Verified
Correct Answer:
Verified
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