Why Is the Demand Curve for Each Seller's Product in Perfect

question 149

Multiple Choice

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

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

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