The demand curve for each seller's product in perfect competition is horizontal at the market price because
A)each seller is too small to affect market price.
B)the price is set by the government.
C)all the sellers get together and set the price.
D)all the demanders get together and set the price.

Question

Quizplus · Accepted Answer

In perfect competition, each seller is a price taker and is too small to affect the market price. They must accept the price set by the market and cannot influence it. Therefore, the demand curve for their product is horizontal at the market price.

The Demand Curve for Each Seller's Product in Perfect Competition