The Demand Curve for Each Seller's Product in Perfect Competition

question 39

Multiple Choice

The demand curve for each seller's product in perfect competition is horizontal at the market price because

• A)each seller is too small to affect market price.
• B)the price is set by the government.
• C)all the sellers get together and set the price.
• D)all the demanders get together and set the price.

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Definitions:

Amplitude

The height of a wave from its midpoint to its peak or trough, indicating the strength or intensity of a wave.

Crest

The highest point of a hill or mountain range; also refers to the peak or summit.

Trough

A trough generally refers to a long, narrow container from which animals eat or drink, but in scientific contexts, it can also mean a low point or minimum phase in a cycle, such as in economics or meteorology.

Visible Spectrum

The portion of the electromagnetic spectrum that is visible to the human eye, typically encompassing wavelengths from about 380 to 750 nanometers.