Demand facing an individual,perfectly competitive firm is
A)perfectly inelastic at the quantity the firm chooses to produce.
B)perfectly inelastic at the quantity determined by market forces.
C)perfectly elastic at the price the firm chooses to charge.
D)perfectly elastic at the price determined by market forces.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, the individual firm is a price taker and must accept the market price determined by market forces. Therefore, the demand facing the firm is perfectly elastic at the price determined by market forces.

Demand Facing an Individual,perfectly Competitive Firm Is