Suppose a firm that produces in a perfect competitive market wants to raise the price of its product above the market price. What impact might this decision have on the firm?

Question

Accepted Answer

The firm's total revenue drops to zero.

Answer

The firm's total revenue increases.

Answer

The firm's total revenue decreases.

Answer

The firm's total profit is maximized.

Answer

Whether the firm's total revenue increases or decreases depends on the elasticity of demand for the firm's product.

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Suppose a firm that produces in a perfect competitive market wants to raise the ...

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