What happens to firms that do not use the inputs and methods that minimize their production costs in a perfectly competitive market in the long run?

Question

Quizplus · Accepted Answer

In a perfectly competitive market, firms that do not minimize their production costs cannot compete effectively with those that do, as they will have higher costs and lower profits. Over time, these inefficiencies make it unsustainable for them to remain in the market, leading to their exit.

What Happens to Firms That Do Not Use the Inputs