The Demand Curve for a Perfectly Competitive Firm Is Horizontal

question 269

Multiple Choice

The demand curve for a perfectly competitive firm is horizontal because

• A) consumers are willing to pay any price to obtain its product.
• B) its production decisions cannot influence the market price.
• C) the firm profits from setting its price higher than the market price.
• D) its product is easy for consumers to differentiate from those of other firms.

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Definitions:

Receiver Port

A component in medical devices designed to accept and secure another part, such as a tube or sensor, facilitating connection or function.

Pressure Equalization

The process of balancing the pressure of an environment with that of another environment, often referred to in the context of ear pressure equilibrium.

Hearing Aid

A device designed to amplify sound for individuals with hearing loss, improving their ability to communicate.

Moisture

The presence of a liquid, especially water, often in trace amounts.