Under the perfectly competitive market structure, the demand curve of an individual firm is

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Under perfect competition, each firm is a price taker, meaning that it has no control over the market price and has to accept the price that is determined by the market forces of demand and supply. Therefore, the demand curve facing an individual firm in a perfectly competitive market is perfectly elastic, which means that the firm can sell as much as it wants at the market price, but cannot sell anything at a price higher than the market price.

Under the Perfectly Competitive Market Structure, the Demand Curve of an Individual