Latoya R.

asked • 01/10/20

The demand curve facing a perfect competitor is perfectly elastic. This implies the 􏰃firm is a 􏰁􏰀

The demand curve facing a perfect competitor is perfectly elastic. This implies the 􏰃firm is a 􏰁􏰀

a. price maker

b. dying 􏰃rm

c. price taker

d. not-for-pro􏰃t 􏰃rm


1 Expert Answer

By:

Lenny D. answered • 01/10/20

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Former Tufts Economics Professor and Wall Street Economist

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The Demand Curve is Horizontal. The competitive firm can not influence price by selling any more or any less.If I am selling hotdags at a Phillies game right next to 50 other vendors and I decide to sell only 50 Hot dogs and head home early it will have no impact on the price the other 50 vendors charge

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