Multiple Choice
Exhibit 8-1
The perfectly competitive firewood market is composed of 1, 000 identical consumers and 1, 000 identical firms.Exhibit 8-1 shows cost data for one firm and demand data for one consumer.What does the demand curve facing a single firm look like?
A) horizontal at a price of $120
B) horizontal at a price of $100
C) horizontal at a price of $80
D) horizontal at a price of $60
E) same as the demand for a single consumer
Correct Answer:
Verified
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