{"id":53253,"date":"2024-04-15T23:51:18","date_gmt":"2024-04-15T23:51:18","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=53253"},"modified":"2024-04-15T23:51:18","modified_gmt":"2024-04-15T23:51:18","slug":"if-one-perfectly-competitive-firm-increases-its-level-of-output-market-supply","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/if-one-perfectly-competitive-firm-increases-its-level-of-output-market-supply\/","title":{"rendered":"If one perfectly competitive firm increases its level of output, market supply"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Will increase and market price will fall&#8221; option2=&#8221;Will increase and market price will rise&#8221; option3=&#8221;Both supple and market price will remain constant&#8221; option4=&#8221;Will decrease and market price will rise&#8221; correct=&#8221;option1&#8243;]<!--more--><\/p>\n<p>The correct answer is: A. Will increase and market price will fall.<\/p>\n<p>In a perfectly competitive market, firms are price-takers, meaning that they have no control over the market price. The market price is determined by the intersection of the market supply and demand curves. If one firm increases its level of output, it will have a negligible effect on the market supply curve. However, it will increase the total quantity supplied in the market, which will cause the market price to fall.<\/p>\n<p>Option B is incorrect because the market price will fall, not rise. Option C is incorrect because both the market supply and market price will change. Option D is incorrect because the market supply will increase, not decrease.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Will increase and market price will fall&#8221; option2=&#8221;Will increase and market price will rise&#8221; option3=&#8221;Both supple and market price will remain constant&#8221; option4=&#8221;Will decrease and market price will rise&#8221; correct=&#8221;option1&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-53253","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>If one perfectly competitive firm increases its level of output, market supply<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/if-one-perfectly-competitive-firm-increases-its-level-of-output-market-supply\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"If one perfectly competitive firm increases its level of output, market supply\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;Will increase and market price will fall&#8221; 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