In a perfectly competitive market, the demand curve faced by an individual firm is:
A) perfectly inelastic.
B) relatively inelastic.
C) perfectly elastic.
D) relatively elastic.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, individual firms are price takers and can sell any quantity at the market price, resulting in a perfectly elastic demand curve.

In a Perfectly Competitive Market, the Demand Curve Faced by an Individual