A perfectly competitive firm has a demand curve that is
A) horizontal
B) vertical
C) downward sloping
D) upward sloping

Question

Quizplus · Accepted Answer

In a perfectly competitive market, each firm faces a horizontal demand curve because the firm can sell any quantity of goods at the market price. This reflects the fact that the firm is a price taker due to the presence of many sellers offering identical products.

A Perfectly Competitive Firm Has a Demand Curve That Is