Exhibit 22-6

-Refer to Exhibit 22-6. A perfectly competitive firm operating in the market depicted in graph (1) faces the demand curve depicted in

Question

Exhibit 22-6
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-Refer to Exhibit 22-6. A perfectly competitive firm operating in the market depicted in graph (1) faces the demand curve depicted in

Quizplus · Accepted Answer

In a perfectly competitive market, each firm faces a perfectly elastic demand curve at the market price, which is represented by a horizontal line. Graph (3) shows a horizontal demand curve, indicating that the firm can sell any quantity of goods at the market price, which is characteristic of perfect competition.

Exhibit 22-6 ​

Exhibit 22-6