Multiple Choice
Refer to the accompanying figure to answer the following questions.
For a firm in a competitive market,the demand curve is horizontal,as shown.
-What will happen if the firm offers its product at a price slightly above price PC?
A) The marginal revenue will drop below zero.
B) The firm will slightly increase its profits.
C) The sales volume will plummet to essentially zero.
D) The firm will run into high barriers to exit from the market.
E) The number of units sold will slightly increase.
Correct Answer:

Verified
Correct Answer:
Verified
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