Which of the following is characteristic of a purely competitive seller's demand curve?
A)Price and marginal revenue are equal at all levels of output.
B)Average revenue is less than price.
C)Its elasticity coefficient is 1 at all levels of output.
D)It is the same as the market demand curve.

Question

Quizplus · Accepted Answer

In a purely competitive market, the demand curve faced by an individual seller is perfectly elastic because the seller is a price taker, meaning price equals marginal revenue at all levels of output. This reflects the fact that the seller can sell any quantity of the good at the market price.

Which of the Following Is Characteristic of a Purely Competitive