Question

If the demand curve confronting an individual firm is perfectly elastic then ___________.

• A. the firm is a price taker
• B. the firm cannot influence the price
• C. the amount the firm offers in the market is small relative to the market supply
• D. all of the above

Answer 1

The correct option is D all of the above

If the demand curve confronting an individual firm is perfectly elastic then:

a) the firm is a price takerb) the firm cannot influence the price

c) the amount the firm offers in the market is small relative to the market supply