If a firm in a perfectly competitive industry lowers its price below the market price, its
A. total revenue will increase.
B. profit will decrease.
C. demand curve will become downward sloping.
D. sales will drop to zero.
Answer: B
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Refer to the figure above. If the supply curve for flash drives shifts from S1 to S2, with no change in the demand curve, the new competitive equilibrium price is:
A) $3. B) $4. C) $5. D) $7.
All of the following aim to reduce income inequality EXCEPT
A) Social Security payments. B) earned income tax credits. C) regressive taxes. D) food stamp programs.
The demand for cake decorators has no relationship to the demand for cakes
a. True b. False Indicate whether the statement is true or false
A movement along a supply curve is induced by a change in
A) input prices. B) taxes and subsidies. C) price expectations. D) the product's own price.