Why can't a firm in a perfectly competitive industry charge a price above the market-clearing price?

Question

Quizplus · Accepted Answer

In a perfectly competitive industry, numerous firms produce the same product and are price takers, which means they have no market power to affect the market price. Therefore, firms cannot charge a price above the market-clearing price without losing customers to their competitors who offer the same product at a lower price. Government-imposed price ceilings may prevent firms from charging a price above a certain level, but this is not the reason in a perfectly competitive market. Firms in a perfectly competitive market do not face significant barriers to entry, making option D incorrect. Option B is also incorrect because firms in a perfectly competitive market are price takers and not price searchers.

Why Can't a Firm in a Perfectly Competitive Industry Charge