wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

The demand curve for a perfectly competitive firm __________________.

A
slopes downward as the quantity demanded increases as the firm lowers price
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
is a horizontal, perfectly elastic demand curve at the market price
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
C
is a straight, downward sloping curve that is price elastic at higher prices and prices and price inelastic as price falls and approaches zero
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
both (B) & (C)
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is B is a horizontal, perfectly elastic demand curve at the market price

Perfect competition is a type of market where there are huge number of buyers and sellers who deals in the same type of product due to which no individual unit is able to influence the price of the product.

Therefore, the demand curve under perfect competition is a horizontal, perfectly elastic demand curve at the market price because at a uniform price any number of quantity can be sold.


flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Monopolistic Competition
ECONOMICS
Watch in App
Join BYJU'S Learning Program
CrossIcon