If a firm is a price taker, then the demand curve for the firm's product is
A)equal to the total revenue curve.
B)perfectly inelastic.
C)perfectly elastic.
D)unit elastic.

Question

Quizplus · Accepted Answer

When a firm is a price taker, it means that the firm has no control over the market price and can sell any quantity of its product at the prevailing market price. This situation is represented by a perfectly elastic demand curve, indicating that a small change in price leads to an infinite change in quantity demanded.

If a Firm Is a Price Taker, Then the Demand