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This statement implies a firm must maintain proficiency in order to subsist in a perfectly competitive market. In perfectly competitive marketplace all prices are established by through supply/demand. Some firms may be a little on the lucky side while others may just be good. I will take luck any day however, at some point luck runs out and you better have learned something from your luck and apply it to being good. A firm in a competitive market must be efficient and find methods of production which yield the correct number of outputs and maintain fixed and variable cost of production at marginal levels.

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