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Imagine a competitive market in equilibrium. If the sellers could make more money per unit sold, why are the sellers not interested in charging higher prices?


Because none of the consumers would ever be willing to pay a price any higher than the current equilibrium price.


Because firms are not allowed to raise their prices.


Because one of their competitors will always be able to undercut them and take away their customers.


There is no reason they will not do it. Suppliers will start charging higher prices.

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