If a seller in a competitive market chooses to charge more than the going price, then:

a. the sellers' profits must increase.

b. the owners of the raw materials used in production would raise the prices for the raw materials.

c. other sellers would also raise their prices.

d. buyers will make purchases from other sellers

Question

Business

Dale Friedman

8 May, 13:51

If a seller in a competitive market chooses to charge more than the going price, then:

a. the sellers' profits must increase.

b. the owners of the raw materials used in production would raise the prices for the raw materials.

c. other sellers would also raise their prices.

d. buyers will make purchases from other sellers

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Answers (1)

Know the Answer?

Braelyn Montgomery · Answer 1

d. buyers will make purchases from other sellers

Explanation:

In the perfect competition structure producers have no power to change prices, as goods are homogeneous. Thus, since products are the same, if the producer raises the price, consumers will consume with other sellers.