For the perfectly competitive broccoli producers in California,the market demand curve for broccoli is
A) a horizontal line.
B) downward sloping.
C) nonexistent.
D) upward sloping.
E) the same as the demand curve each firm faces.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, the market demand curve is downward sloping, reflecting the law of demand—that as the price of a good decreases, the quantity demanded increases, and vice versa. Each individual firm faces a perfectly elastic demand curve due to the large number of competitors and the homogeneous nature of the product, but the market demand curve for all broccoli producers combined is downward sloping.

For the Perfectly Competitive Broccoli Producers in California,the Market Demand