If one perfectly competitive firm increases its level of output, market supply:

 c. >>>>>>>>>>>>>>>>> and market price will both remain constant. 

1. The correct answer was: c. and market price will both remain constant.. 

"C" maybe the most likely answer if the firm mentioned does not command a dominant market share. We assume here that the firm will simply eat up the share of its competitors. However if the perfectly competitive firm is the dominant player in the market and the increase in the level of output is aimed at doubling its SOM, then it's a different story. Market Supply may increase beyond what the market can absorb. To maintain their share, competitors will resort to sales promo and/or price cut ... if so, price war ensues.

answer C _________________________________

c. and market price will both remain constant. ...................................................................................

I chose option ------- C

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 c. and market price will both remain constant. ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

(C) and market price will both remain constant

The answer is  :  Option ( C ) 

To me rigth answer is A: market supply will increase and market price will fall.

I am Go With Option " C " ....