The demand curve for a perfectly competitive firm is horizontal because

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In a perfectly competitive market, a firm is a price taker, meaning it cannot influence the market price by changing its own production decisions. Therefore, the demand curve facing the firm is perfectly elastic (horizontal). If the firm tries to charge a higher price than the market price, it will not be able to sell any units of its product. Similarly, if it tried to charge a lower price, it would not benefit from increased sales because it would have to lower the price for all units sold, erasing any gain in revenue. As a result, a perfectly competitive firm must accept the market price and produce the quantity of output that maximizes its profit at that price level.

The Demand Curve for a Perfectly Competitive Firm Is Horizontal