A perfectly competitive firm does not influence the demand for its commodities by lowering its…

Economics JAMB 1984

A perfectly competitive firm does not influence the demand for its commodities by lowering its price below the market price because?

  • it is illegal price cutting
  • other competitors will be angry
  • total revenue will decline due to its elastic demand curve checkmark
  • it is able to sell all it wants at the market price
  • it does not maximize profit

The correct answer is: C

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