Question
A horizontal demand curve is
Answer: Option D
Answer: (d)
The demand curve facing a perfectly competitive firm is flat or horizontal. This is because all firms in perfect competition are by definition selling an identical (homogeneous) product.
A horizontal demand curve is a flat curve with a slope of zero. It is a perfectly elastic demand curve. Because the slope of the curve is zero, it is impossible for the price to change in the market.
Was this answer helpful ?
Answer: (d)
The demand curve facing a perfectly competitive firm is flat or horizontal. This is because all firms in perfect competition are by definition selling an identical (homogeneous) product.
A horizontal demand curve is a flat curve with a slope of zero. It is a perfectly elastic demand curve. Because the slope of the curve is zero, it is impossible for the price to change in the market.
Was this answer helpful ?
More Questions on This Topic :
Question 3. Selling cost means:....
Question 4. Price theory is also known as
....
Question 6. Real wage is :....
Question 7. Monopoly means
....
Question 10. Plant and machinery are....
Submit Solution