how-does-the-fixed-market-price-in-perfect-competition-affect-a-firms-decision-t

Question

How does the fixed market price in perfect competition affect a firm's decision to increase output?

Accepted Answer

The firm can increase output without affecting the market price.

Answer

The firm cannot increase output without increasing the market price.

Answer

The firm must increase the market price to increase output.

Answer

The firm must decrease the market price to increase output.