The demand curve for each perfectly competitive firm is
A)Downward-sloping.
B)Horizontal.
C)Vertical.
D)Upward-sloping.

Name: The demand curve for each perfectly competitive firm is A)Downward-sloping. B)Horizontal. C)Vertical. D)Upward-sloping.
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Question

Quizplus · Accepted Answer

In perfect competition, each firm is a price taker and cannot influence the market price. Therefore, the demand curve facing the firm is horizontal, so the firm can sell any quantity of output at the market price.

The Demand Curve for Each Perfectly Competitive Firm Is