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
Economics
You might also like to view...
The direct relationship between changes in price and changes in quantity supplied is
A) a change in supply. B) shown by a shift in the supply curve. C) the law of supply. D) the law of relative production.
Economics
Often single-owner proprietorships seem more profitable than they really are. The reason for this is that
A) they receive special tax benefits compared to corporations. B) they use different accounting procedures. C) they often fail to consider the opportunity cost of the labor provided by the owner. D) they are not allowed to deduct depreciation expense.
Economics