A perfectly elastic demand function

Question

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A perfectly elastic demand function means that consumers will only purchase the product at a certain price and will not buy it at any higher price. This situation is only possible in a perfectly competitive market, where there are many firms producing identical products and consumers have no brand loyalty. In this scenario, if an individual firm raises its price, consumers will simply switch to a competitor's product, resulting in zero sales. Therefore, a firm with a perfectly elastic demand curve cannot increase sales by lowering the price of output, as consumers will already buy as much as they want at the given price. The firm's marginal revenue will be constant, not decreasing, as long as it sells from the demand function.

A Perfectly Elastic Demand Function