Competitive firms have:
A)horizontal demand curves and can sell only a limited amount at each price
B)horizontal demand curves and can sell as much as they want at the market price
C)downward-sloping demand curves and can sell as much as they want at the market price
D)downward-sloping demand curves and can sell only a limited amount at each price

Question

Quizplus · Accepted Answer

Competitive firms face a horizontal demand curve because they are price takers in the market, meaning they can sell as much as they want at the prevailing market price but cannot influence the price themselves.

Competitive Firms Have