Demand Curve of a Firm Is Perfectly Elastic Under: (Choose the Correct Alternative)

Perfect competition

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Monopoly

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Monopolistic competition

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Oligopoly

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Solution

The correct option is A
Perfect competition

In perfect competition, the firm can sell any amount of goods at the prevailing prices, therefore the demand curve of a firm is perfectly elastic under perfect competition.
Also read:
Elasticity of Demand
Price Elasticity of Supply
Price Elasticity of Demand Formula
Income Elasticity of Demand Formula
The option (a) is correct.

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Similar questions

in which form of market demand curve of a firm is perfectly elastic ?

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