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 sell a good at a price higher than the market equilibrium price without losing customers to their competitors who sell at the market price of $100. Therefore, if some firms try to sell at $120, they may not be able to sell any output and risk selling zero output.

Assume the Market Equilibrium Price Is $100