In a perfectly competitive industry the price of good a is


In a perfectly competitive industry, the price of good A is $2. If a firm in this inudustry decides to increase its price to $2.50, it will:

a. experience a decrease in profits of $.50 per unit.

b. lose some of its customers in the market.

c. realize an increase in profits of $.50 per unit.

d. be unable to sell any quantity of good A that is produced.

e. be able to increase the quantity sold.

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Business Economics: In a perfectly competitive industry the price of good a is
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