In pure competition, the demand for the product of a single firm is perfectly
A) elastic because the firm produces a unique product.
B) inelastic because the firm produces a unique product.
C) elastic because many other firms produce the same product.
D) inelastic because many other firms produce the same product.

Question

Quizplus · Accepted Answer

In pure competition, there are many firms producing the same product. As a result, any individual firm's output is a small fraction of the total market supply. Therefore, the demand for the product of a single firm is elastic as there are many substitutes available to the consumers.

In Pure Competition, the Demand for the Product of a Single