In pure competition,each retailer faces a horizontal demand curve and must sell its products at the going "market" or equilibrium price.

Question

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In pure competition, all retailers sell identical products and there are no barriers to entry or exit. Therefore, each retailer faces a perfectly elastic, or horizontal, demand curve and must sell its products at the going "market" or equilibrium price.

In Pure Competition,each Retailer Faces a Horizontal Demand Curve and Must