It is said that in a perfectly competitive market, raising the price of a firm’s product from the prevailing market price of $179.00 to $199.00, ____________________.
A. will likely cause the firm to reach its shutdown point immediately
B. will cause the firm to recover some of its opportunity costs
C. could likely result in a notable loss of sales to competitors
D. is a sure sign the firm is raising the given price in the market
Answer:C
It is said that in a perfectly competitive market, raising the price of a firm’s product from the prevailing market price of $179.00 to $199.00, ____________________.
A. will likely cause the firm to reach its shutdown point immediately B. will cause the firm to recover some of its opportunity costs C. could likely result in a notable loss of sales to competitors D. is a sure sign the firm is raising the given price in the market
Explanation: 14. If a perfectly competitive firm is a price taker, then