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    Price charging ability in perfect competition

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    Why will a firm in a perfectly competitive industry choose not to charge a price either above or below the market price?

    © BrainMass Inc. brainmass.com October 9, 2019, 7:41 pm ad1c9bdddf

    Solution Preview

    The firms in a perfectly competitive market are price takers and do not have any influence on the price. The firm faces a demand curve that is perfectly elastic ...

    Solution Summary

    The solution explains why firms in a competitive industry chose to charge only market price.