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

A perfectly competitive firm does not influence the demand for its commodities by lowering its price below the market price because?
  • A.
    it is illegal price cutting
  • B.
    other competitors will be angry
  • C.
    total revenue will decline due to its elastic demand curve
  • D.
    it is able to sell all it wants at the market price
  • E.
    it does not maximize profit
Correct Answer: Option C
Explanation