A perfectly competitive firm faces a perfectly elastic demand curve.

Name: A perfectly competitive firm faces a perfectly elastic demand curve.
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In perfect competition, there are a large number of buyers and sellers, and each seller offers a homogeneous product. As a result, the demand curve for the individual seller is perfectly elastic because the seller can sell as much as it wants at the prevailing market price, but cannot charge more than the market price.

A Perfectly Competitive Firm Faces a Perfectly Elastic Demand Curve