Every firm is constrained by the demand curve for the product it produces.

Question

Quizplus · Accepted Answer

The demand curve represents the quantity of a product that consumers are willing to purchase at different prices. The firm must produce at a quantity and price that is in line with the demand curve for its product, as it cannot force consumers to purchase more than they are willing to buy. Thus, every firm is constrained by the demand curve for its product.

Every Firm Is Constrained by the Demand Curve for the Product