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:

Obligated

Being legally or morally bound to do something.

Perfect Tender Rule

A legal principle requiring sellers to deliver goods that exactly meet the terms and specifications of the contract.

Performance

The act of fulfilling a duty, contract, or obligation as required or agreed.

Conditional Warranties

Warranties that are only effective under certain conditions or circumstances, often requiring specific actions or maintenance by the buyer.