In a Perfectly Competitive Market, the Demand Curve Faced by Each

question 59

Multiple Choice

In a perfectly competitive market, the demand curve faced by each firm is:

• A)highly inelastic.
• B)perfectly elastic.
• C)perfectly inelastic.
• D)less elastic.

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Definitions:

Gross Profit

The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.