Question

A perfectly competitive firms demand curve is ________________.

• A. perfectly inelastic
• B. the same as the market demand curve
• C. downward sloping
• D. the same as the firms marginal revenue curve

Answer 1

The correct option is D the same as the firms marginal revenue curve

The demand curve under perfect competition is also called marginal revenue curve which is a horizontal line parallel to x-axis which means that the price of the commodity remains the same and any amount of quantity can be sold at this prevailing price in the market but a little variation in the price will lead to a fall in demand to zero.