A firm that is a price taker faces a perfectly ______ demand curve.
A) Horizontal
B) Vertical
C) Inelastic
D) Convex

Question

Quizplus · Accepted Answer

A price taker faces a perfectly horizontal demand curve because the firm has no control over the price of the product, and any increase in price would result in a loss of all customers. Therefore, the demand for the product will remain constant regardless of the price.

A Firm That Is a Price Taker Faces a Perfectly