In a perfectly competitive market,smaller-than-efficient sized firms can exist in

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In the short run, smaller-than-efficient sized firms can exist in a perfectly competitive market due to fixed costs. Fixed costs cannot be adjusted in the short run, so firms may not be able to reach their efficient size. However, in the long run, firms can adjust their plant size and production capacity to become more efficient, and any firms that remain smaller-than-efficient will not be able to compete and will either exit the market or be absorbed by larger firms.

In a Perfectly Competitive Market,smaller-Than-Efficient Sized Firms Can Exist in