If the firms in an industry are price takers, then every firm in the industry faces a horizontal demand curve.

Name: If the firms in an industry are price takers, then every firm in the industry faces a horizontal demand curve.
Brand: Quizplus
Rating: 4.9 (51 reviews)

Question

Quizplus · Accepted Answer

In a perfectly competitive market, where firms are price takers, each firm faces a horizontal demand curve because they can sell any quantity of their product at the market price, indicating perfectly elastic demand.

If the Firms in an Industry Are Price Takers, Then