Firms in perfectly competitive industries have a ________ individual demand curve when the price is on the vertical axis and the quantity is on the horizontal axis. The shape of the curve is result of the firm being a ________.

Question

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In a perfectly competitive market, firms are price takers, meaning they accept the market price. This results in a horizontal individual demand curve, as they can sell any quantity at the market price.

Firms in Perfectly Competitive Industries Have a ________ Individual Demand