Which of the following terms would best describe the price elasticity of demand facing a perfectly competitive firm?
A)perfectly inelastic
B)inelastic
C)unit
D)elastic
E)perfectly elastic

Question

Quizplus · Accepted Answer

In a perfectly competitive market, firms are price takers, meaning they can sell as much as they want at the market price, resulting in a perfectly elastic demand curve.

Which of the Following Terms Would Best Describe the Price