If the corn industry is perfectly competitive, ________ for corn is downward sloping and ________ is horizontal.
A) the market demand curve; an individual corn producer's demand curve
B) an individual corn producer's demand curve; the marginal revenue curve
C) the marginal cost curve; the marginal revenue curve
D) marginal revenue curve; average total cost curve

Question

Quizplus · Accepted Answer

In a perfectly competitive market, the market demand curve for a product like corn is downward sloping due to the law of demand, which states that as the price of a good decreases, the quantity demanded increases, and vice versa. An individual corn producer's demand curve is horizontal, reflecting the fact that the producer is a price taker and can sell any quantity of corn at the market price.

If the Corn Industry Is Perfectly Competitive, ________ for Corn