Ask Question
3 January, 06:38

The competitive firm's demand curve is: a. unit elastic over the relevant range of output. b. perfectly elastic over the relevant range of output. c. perfectly inelastic over the relevant range of output. d. elastic above the market price and inelastic below the market price.

+2
Answers (1)
  1. 3 January, 10:22
    0
    perfectly elastic over the relevant range of output.

    Explanation:

    In a perfect competition there are many firms in the market selling goods that are usually homogeneous in nature. Each individual firm will not be able to influence the price for which it offers goods and services to the customer.

    The firm's are price takers and there is no barrier to entry.

    This results in a situation where for all levels of quantity demanded there is no change in price, and demand curve is a horizontal line.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The competitive firm's demand curve is: a. unit elastic over the relevant range of output. b. perfectly elastic over the relevant range of ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers