In a perfectly competitive market, an individual firm's inability to sell any amount of the good at a price exceeding the market price is

Price taking behavior

The correct answer is Option 1: Price taking behavior

In a perfectly competitive market, an individual firm is a price taker, meaning:

• It cannot influence the market price by changing its own output.
• The firm can sell any quantity at the prevailing market price, but it cannot charge a higher price because buyers have many alternatives (other firms selling identical products).
• If the firm tries to set a higher price, buyers will simply switch to other sellers, leading to zero sales.

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