A flat or horizontal demand curve for a firm indicates that:

Question

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A flat or horizontal demand curve indicates that the firm is a price taker and has no market power. This means that the firm must accept the market price and cannot influence it by changing its own prices or output. In such a market, consumers are willing to buy any amount of the good at the going price, and the firm can sell as much as it wants without having to lower the price. Therefore, the firm's revenue stays the same regardless of how much it produces or sells, resulting in a flat demand curve.

A Flat or Horizontal Demand Curve for a Firm Indicates