The Figure Given Below Shows the Aggregate Demand and Supply

question 105

Multiple Choice

The figure given below shows the aggregate demand and supply curves of a perfectly competitive market.Figure 10.7

-If a firm has a perfectly elastic demand curve, then:

• A)it must be a monopoly firm.
• B)it can charge any price it desires.
• C)the firm has significant market power.
• D)the firm has no market power.
• E)the firm should shut down.

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