A Profit-Maximizing Perfectly Competitive Firm Must Decide

Jenny sells lemonade by the street during the summer time.Several other kids also sell lemonade in Jenny's neighborhood. Refer to the information above.If the lemonade market is perfectly competitive and price is already at the equilibrium level,Jenny can increase her revenue if she: A)decreases the price of lemonade and increases the output. B)increases the price of lemonade and decreases the output. C)increases both the price and output of lemonade. D)keeps the price the same and increases the output.

Jenny sells lemonade by the street during the summer time.Several other kids also sell lemonade in Jenny's neighborhood. Refer to the information above.Suppose that the first week of summer,Jenny charged 25 cents for an 8-ounce cup of lemonade,her next-door neighbor Sam charged 50 cents for an 8-ounce cup of lemonade,and Alex across the street charged 15 cents for an 8-ounce cup of lemonade.What is most likely to happen? A)Everyone will start to charge 50 cents to maximize revenue. B)A price war will break out,and all of the kids will gradually increase their prices. C)Each kid will keep his or her price at the original amount,because they had chosen those prices to maximize profits. D)Eventually prices will equalize at all three lemonade stands.