Under perfect competition,the demand curve facing a firm and the firm's marginal revenue curve are

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Under perfect competition, a firm is a price taker and has no market power to influence the market price. Therefore, the demand curve facing a firm is perfectly elastic or horizontal at the level of the market price. Since the price remains constant regardless of the level of output, the marginal revenue curve is also horizontal at the level of the market price, and it coincides with the demand curve. Therefore, both curves are horizontal at the level of the market price.

Under Perfect Competition,the Demand Curve Facing a Firm and the Firm's