If firms in a competitive market are not identical,then an increase in cost will

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In a competitive market, firms compete on the basis of price and the most efficient firms are able to offer lower prices. If one firm experiences an increase in cost, it will no longer be as efficient as its competitors and will have to raise its prices. Consumers are likely to switch to other firms, causing the less efficient firm to lose market share. This could lead to the less efficient firms becoming unsustainable in the long run, pushing the most inefficient firms out of the market.

If Firms in a Competitive Market Are Not Identical,then an Increase