If the supply and demand curves in the provided graph represent the market supply and demand for a purely competitive industry, then the demand curve that an individual firm in the industry faces
A)is identical to the market demand.
B)is equal to the marginal-revenue curve, which is a flat line at P₀ .
C)is more elastic than the market demand but has a marginal-revenue curve lying below it.
D)has the same slope as the market demand, but at P₀ its quantity demanded is only a fraction of Q₀ .

Question

If the supply and demand curves in the provided graph represent the market supply and demand for a purely competitive industry, then the demand curve that an individual firm in the industry faces
A)is identical to the market demand. 
B)is equal to the marginal-revenue curve, which is a flat line at P₀ . 
C)is more elastic than the market demand but has a marginal-revenue curve lying below it. 
D)has the same slope as the market demand, but at P₀ its quantity demanded is only a fraction of Q₀ .

Quizplus · Accepted Answer

The Answer of  If the supply and demand curves in the provided graph represent the market supply and demand for a purely competitive industry, then the demand curve that an individual firm in the industry faces
A)is identical to the market demand. 
B)is equal to the marginal-revenue curve, which is a flat line at P₀ . 
C)is more elastic than the market demand but has a marginal-revenue curve lying below it. 
D)has the same slope as the market demand, but at P₀ its quantity demanded is only a fraction of Q₀ .

If the Supply and Demand Curves in the Provided Graph