Assume the market equilibrium price is $100.In a perfectly competitive market,some firms can sell a good at the price of $120 and:

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In a perfectly competitive market, firms cannot influence the price and must accept the market equilibrium price of $100. If a firm tries to sell the good at $120, they will not be able to sell any output because consumers will choose to purchase from the other firms who are selling at the market price. Therefore, the firm risks selling zero output and may not receive any profit.

Assume the Market Equilibrium Price Is $100