Which of the Following Statements Is Correct About the Demand

question 130

Multiple Choice

Which of the following statements is correct about the demand curve of the perfectly competitive industry?

• A) The demand curve of the perfectly competitive industry is horizontal as are the demand curves facing the individual firms.
• B) The market demand curve of perfect competition is vertical because the individual consumers are buying a homogeneous product.
• C) The market demand curve of the perfectly competitive industry is downward sloping while the demand curve facing an individual firm is horizontal.
• D) The market demand curve of the perfectly competitive industry is downward sloping, so the demand curves of the individual firms are also downward sloping.