In a perfectly competitive market buyers want to buy 20,000 units and sellers want to sell 20,000 units of a product when the price is $50 per unit. ABC Corporation, one seller in this market,
A. will sell a fixed number of units regardless of how the price changes.
B. faces a downward-sloping demand curve for its product.
C. will maximize profit by selling at a price less than $50.
D. faces a perfectly elastic demand curve at a price of $50.
Answer: D
Economics
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