What can we conclude about a competitive firm facing a perfectly elastic demand curve?

Question

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A perfectly elastic demand curve means that consumers are willing to buy infinite quantities of the product at a given price. Therefore, a competitive firm facing this type of demand curve can sell all of its output at the market price without losing any sales. It cannot increase its price without losing sales, as consumers have perfect substitutes available at the same price, and it cannot sell more output by reducing its price, as the demand curve is already perfectly elastic.

What Can We Conclude About a Competitive Firm Facing a Perfectly