Individual firms in a perfectly competitive market can

Question

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In a perfectly competitive market, all firms sell an identical product and the market sets the price. Therefore, individual firms cannot charge a price above or below the market price. They can only sell all they produce at the market price. In the short run, some firms may earn profit, while others may incur losses depending on their cost structure, but in the long run, all firms earn zero economic profit due to free entry and exit of firms from the market.

Individual Firms in a Perfectly Competitive Market Can