Asked by Marisa Tavarez on May 14, 2024
Verified
An individual firm's demand curve in a perfectly competitive market is
A) downward sloping.
B) upward sloping.
C) perfectly elastic.
D) perfectly inelastic.
Perfectly Elastic
Refers to a situation where a small change in price leads to an infinite change in quantity demanded or supplied.
Individual Firm's Demand Curve
The graph showing the quantity of a product that a firm is willing and able to sell at various prices, holding other factors constant.
- Pinpoint the traits that separate perfectly competitive markets from differing market configurations.
Verified Answer
TO
Tosha OsborneMay 21, 2024
Final Answer :
C
Explanation :
In a perfectly competitive market, an individual firm's demand curve is perfectly elastic because the firm is a price taker and can sell any quantity of its product at the market price.
Learning Objectives
- Pinpoint the traits that separate perfectly competitive markets from differing market configurations.
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