The demand curve for a perfectly competitive firm is horizontal because
A) consumers are willing to pay any price to obtain its product.
B) its production decisions cannot influence the market price.
C) the firm profits from setting its price higher than the market price.
D) its product is easy for consumers to differentiate from those of other firms.
B
You might also like to view...
When Kathryn spends her entire budget and equates marginal utility per dollar across all goods, then Kathryn's total utility is maximized
Indicate whether the statement is true or false
When the government wants to give an exclusive right to one firm to produce a product, it
A) uses antitrust laws to keep other firms from entering the market. B) imposes a tariff on imports of the product. C) imposes a quota on imports of the product. D) grants a patent or copyright to an individual or firm.