- If A Firm In A Perfectly Competitive Market Were To Raise Its Price Its Revenue Would Decrease If Market Demand Were El 1 (40.62 KiB) Viewed 39 times
- If A Firm In A Perfectly Competitive Market Were To Raise Its Price Its Revenue Would Decrease If Market Demand Were El 2 (43.46 KiB) Viewed 39 times
If a firm in a perfectly competitive market were to raise its price, its revenue would decrease if market demand were elastic. revenue would fall to zero. profits would increase if costs were constant. revenue would increase if market demand were inelastic.
If the price of a product in a perfectly competitive market is R510 and the marginal cost of a firm producing that product is R490, what should the firm do to maximise profits? Shut down permanently. Increase production. Shut down temporarily. Decrease production.