Question

A perfect competition firm faces a _____
demand curve for product
A) Upward sloping
B) Downward sloping
C) Vertical straight line
D) Horizontal straight
line​

Answer 1

Answer:

D) Horizontal straight  line​

Explanation:

The long-run equilibrium point for a perfectly competitive market occurs where the demand curve (price) intersects the marginal cost (MC) curve and the minimum point of the average cost (AC) curve. Perfect Competition in the Long Run: In the long-run, economic profit cannot be sustained.

A perfectly competitive firm's demand curve is a horizontal line at the market price. This result means that the price it receives is the same for every unit sold. The marginal revenue received by the firm is the change in total revenue from selling one more unit, which is the constant market price.

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