In pure competition when the market price of the product is initially higher than the minimum average cost of the firms, then:A. Some firms will exit the industry and the industry supply will decrease.B. Other firms will enter the industry and the industry supply will increase.C. Some firms will exit the industry and the industry supply will increase.D. Other firms will enter the industry and the industry supply will decrease.

If price is below the minimum average variable cost, the firm must shut initially down.market price is at a level higher than the zero-profit point, then price.

What transpires to pricing in a market that is solely competitive?

Instead of specific buyers or sellers setting the price, the market's supply and demand make this decision. Every business and customer in a market with perfect competition are price takers. A price-taking customer believes they can buy in any quantity at the going rate without changing it.

What are the parameters of a market with only competition?

a marketing scenario where there are many vendors of a product that cannot be differentiated, meaning that no one firm can competed.

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