Explain Why a Perfectly Competitive Firm Has No Incentive to Charge

question 35

Essay

Explain why a perfectly competitive firm has no incentive to charge a higher or lower price than the market price.

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Definitions:

Computer Hardware

The physical components of a computer system, such as the central processing unit (CPU), memory, hard drives, and peripherals.

Device Driver

A small piece of software that tells the operating system and other software how to communicate with a piece of hardware.

Computer Hardware

The physical components of a computer system, including the motherboard, CPU, RAM, and storage devices.

Operating System

The software that supports a computer's basic functions, such as scheduling tasks, executing applications, and controlling peripherals.