Answer to Question #276472 in Microeconomics for Zeerh

Question

Which one of the following statements is correct? The demand for a product of a perfectly competitive firm.

A.slopes downwards from left to right

B.slopes upwards from left to right

C. Is perfectly elastic

D. Is perfectly inelastic

Answer 1

C. Is perfectly elastic

In a completely competitive market, all goods are regarded perfect substitutes, and each of the small, individual enterprises participating in the market has a demand curve that is perfectly elastic.