Why doesn’t a perfectly competitive firm charge a price slightly higher than the industry price in order to earn extra profit?
What will be an ideal response?
A perfectly competitive firm is producing a product that is identical to the output of each of its competitors. Additionally, it is only one firm of many in the market. Thus, no buyer would pay a price above the industry rate in order to buy from one particular firm; instead, the consumer would simply buy from one of the many other firms.
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The opportunity cost of holding money
A) refers to the amount of paper currency held by the Fed. B) is measured by the alternative interest yield obtainable by holding some other asset. C) is based on the fiduciary monetary system. D) refers to the Fed's role as the lender of last resort.
Peanut butter and jelly are complements for consumers. In 2015, the price of peanut butter increased. As a result, the ________ increased, which led to ________ in the price of jelly and ________ in the quantity of jelly
A) demand for jelly; a decrease; a decrease B) supply of jelly; a decrease; an increase C) supply of jelly; an increase; a decrease D) demand for jelly; an increase; an increase
The effect of trade on specialized employees of import-competing industries will be ________ jobs and ________ pay because they are relatively ________
A) fewer; lower; immobile B) fewer; lower; mobile C) more; lower; immobile D) more; higher; mobile E) more; higher; immobile
When the economy is near the natural unemployment rate, most adult males looking for work are experiencing ________ unemployment
A) turnover B) mismatch C) cyclically D) seasonally