Question discussion

In perfect competition, the demand curve faced by an individual firm is

1914Medium DSSSB TGT Computer Science 0 replies

In perfect competition, the demand curve faced by an individual firm is

Adownward sloping
Bperfectly inelastic (vertical)
Cperfectly elastic (horizontal) at the market price
Dupward sloping

Correct answer: C

Explanation

Each firm is a price taker; it can sell any quantity at the market price, so its demand curve is horizontal.

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