The demand curve facing a perfectly competitive firm depends on
A) the marginal cost of the firm.
B) market demand alone.
C) market demand and the firm's supply curve.
D) market supply alone.
E) market demand and the market supply curve.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, the demand curve facing an individual firm is determined by the intersection of market demand and market supply, which sets the market price that the firm takes as given.

The Demand Curve Facing a Perfectly Competitive Firm Depends on