If the market for butter is perfectly competitive, then the demand curve facing a firm that produces butter will be:
A)unit elastic.
B)perfectly inelastic.
C)perfectly elastic.
D)upward sloping.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, an individual firm can sell as much as it wishes at the market price, implying that the demand curve is perfectly elastic.

If the Market for Butter Is Perfectly Competitive, Then the Demand