Why do single firms in perfectly competitive markets face horizontal demand curves? A. With many firms selling an identical product, single firms have no effect on market price. B. With many buyers, single firms can sell as much as they want regardless of price. C. With many firms in the market selling a differentiated product, single firms have the ability to charge a constant price. D. With each firm facing a unique demand for its product, single firms can sell as much as they want regardless of price. E. Both a and b.
Why do single firms in perfectly competitive markets face horizontal demand curves? A. With many firms selling an identical product, single firms have no effect on market price. B. With many buyers, single firms can sell as much as they want regardless of price. C. With many firms in the market selling a differentiated product, single firms have the ability to charge a constant price. D. With each firm facing a unique demand for its product, single firms can sell as much as they want regardless of price. E. Both a and b.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter8: Perfect Competition
Section: Chapter Questions
Problem 1SCQ: Firms ill a perfectly competitive market are said to be price takers that is, once the market...
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Why do single firms in perfectly competitive markets face horizontal demand curves ?
With many firms selling an identical product, single firms have no effect on market price .
With many buyers, single firms can sell as much as they want regardless of price.
With
many
firms in the market selling
a differentiated
product, single firms have the ability to charge a constant price.With each firm facing a unique demand for its product, single firms
can sell as much as they want regardless of price.
Both a and b.
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