To sell an extra unit of output, a perfect competitor ———- while an imperfect competitor ————-....
To sell an extra unit of output, a perfect competitor ———- while an imperfect competitor ————-.
a. Does not alter price; must lower price.
b. Must hope the market falls; must lower price.
c. Does not alter price; does not alter price either.
d. Must lower price; must lower pricd.
Homework Answers
Answer is A.
Does not alter Price, Must Lower Price.
This is because perfect competitor has stiff margins and hence will not alter price in pursuit of losing customer to competition. Whereas imperfect competitor will lower price to match the competitors snd gain customers.
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To sell an extra unit of output, a perfect competitor ———- while
an imperfect competitor ————-....
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