The supply curve facing a firm for a factor of production in a perfectly competitive market is:
A) upward sloping.
B) downward sloping.
C) vertical.
D) horizontal.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, the supply curve facing a firm for a factor of production is horizontal, indicating that the firm can hire any amount of the factor at the prevailing market price.

The Supply Curve Facing a Firm for a Factor of Production