If a perfectly competitive firm charges more than the market price, then it loses all of its customers.

Name: If a perfectly competitive firm charges more than the market price, then it loses all of its customers.
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Question

Quizplus · Accepted Answer

In a perfectly competitive market, all firms charge the same market price. If one firm charges more than the market price, consumers will switch to other firms offering the same product at the market price, causing the firm to lose all of its customers.

If a Perfectly Competitive Firm Charges More Than the Market