In the long run, a perfectly competitive firm leaves the market if the market price is less than the firm's average total cost.

Name: In the long run, a perfectly competitive firm leaves the market if the market price is less than the firm's average total cost.
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In the long run, if the market price is below the firm's average total cost, the firm cannot cover all its costs, leading to losses, prompting it to exit the market.

In the Long Run, a Perfectly Competitive Firm Leaves the Market