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.