The firm should not raise its price.
Perfect competition is the ideal market system in which all producers and consumers have complete and symmetric knowledge and there are no transaction costs.
In this type of ecosystem, there are many manufacturers and the customers are competing with one another.
A monopolistic market is theoretically the inverse of perfect competition.
A completely competitive firm's profit-maximizing decision would take place when the marginal revenue equals marginal cost that is, when the MR = MC. A profit-seeking company should continue to boost output as long as MR > MC. If the marginal revenue is less then it should not raise the price.
Therefore, the firm should not raise its price
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