For a firm in a competitive market, an increase in the quantity produced by the firm will result in
A)a decrease in the product's market price.
B)an increase in the product's market price.
C)no change in the product's market price.
D)either an increase or no change in the product's market price depending on the number of firms in the market.

Question

Quizplus · Accepted Answer

In a competitive market, individual firms are price takers, meaning they cannot influence the market price by changing their output. Therefore, an increase in the quantity produced by a single firm does not affect the market price.

For a Firm in a Competitive Market, an Increase in the Quantity