Asked by Esteban Pereyra on Sep 24, 2024
A perfectly competitive firm has
A) A perfectly elastic demand for its products
B) A perfectly inelastic demand for its products
C) A downward sloping demand for its products
D) None of the above
Perfectly Competitive
A perfectly competitive market is one where there are many buyers and sellers, all dealing in identical products, and where no single entity can influence the market price.
Perfectly Elastic
Describes a market situation in which the quantity demanded or supplied changes by an infinite amount in response to any change in price.
Demand Curve
A graphical representation showing the relationship between the price of a product and the amount of it that consumers are willing to purchase at various prices.
- Acknowledge the attributes of a perfectly competitive market, including the flexibility of the demand curve.
Learning Objectives
- Acknowledge the attributes of a perfectly competitive market, including the flexibility of the demand curve.
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