Which of the following is a characteristic of a perfectly competitive seller's demand curve?

Question

Quizplus · Accepted Answer

In a perfectly competitive market, the seller is a price taker, meaning they have no control over the market price. Therefore, the seller's demand curve is perfectly elastic, or horizontal, at the market price. This means that at all levels of output, the price and marginal revenue are equal. Option B is incorrect because in a perfectly competitive market, average revenue is equal to price. Option C is incorrect because the elasticity of the seller's demand curve is infinite at the market price. Option D is also incorrect because the seller's demand curve is not the same as the market demand curve, which represents the total demand for the product in the market.

Which of the Following Is a Characteristic of a Perfectly