Which of the following is a reason why a perfectly competitive firm cannot charge a price above the market-clearing price?

Question

Quizplus · Accepted Answer

In a perfectly competitive market, there are numerous firms producing identical products, making it impossible for any individual firm to charge a price above the market-clearing price. If a firm tries to charge a higher price, consumers will simply switch to a different firm offering the same product at a lower price, causing the original firm to lose business. Therefore, in a perfectly competitive market, the price is determined by the forces of supply and demand, and there is no room for individual firms to charge prices above the market price.

Which of the Following Is a Reason Why a Perfectly