In a perfectly competitive factor market, the supply of factor to an individual firm is:

Question

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In a perfectly competitive factor market, each firm is a price taker, meaning they cannot influence the price of the factor they are purchasing. Therefore, the supply of factor to an individual firm is perfectly elastic, or horizontal. Regardless of how much of the factor the firm demands, they can purchase it at the same price.

In a Perfectly Competitive Factor Market, the Supply of Factor