The market demand curve in perfect competition is found by
A) horizontally summing the supply curves of the individual firms in the industry.
B) horizontally summing the demand curves of the individual consumers.
C) utility maximizing behavior of the "representative consumer."
D) the interaction of supply and demand at the individual firm and consumer levels.
B
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Which of the following is an important ingredient of efficient economic organization?
a. high marginal tax rates b. competitive markets c. rapid increases in the money supply d. imposition of high tariffs that will protect domestic producers from the ravages of foreign competition
In a monopolistically competitive market,
a. there are only a few sellers. b. each firm takes the price of its product as given. c. firms can enter or exit the market without restrictions. d. each firm produces a product that is essentially identical to the products of other firms in the market.