The Demand Curve for a Perfectly Competitive Firm Is Horizontal

question 269

Multiple Choice

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.

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Definitions:

Medical Decisions

The process of making choices related to health care by patients, often involving considerations of various treatment options.

Executed

A term applied to a contract whose terms have all been fully performed.

Implied Trust

A trust created by a court when (1) an express trust fails and the court can imply the existence of a trust from certain behavior or (2) the law steps in to protect someone from fraud or other wrongdoing.

Involuntary

Actions or reactions that occur without a person's conscious decision or control, often referencing physical or legal circumstances.