Answered

Explore Westonci.ca, the premier Q&A site that helps you find precise answers to your questions, no matter the topic. Join our platform to get reliable answers to your questions from a knowledgeable community of experts. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.

The demand curve for a perfectly competitive firm is perfectly horizontal because:

A. It cannot obtain a higher price by restricting its output, nor does it need to raise its price to increase its sales volume.
B. It cannot obtain a higher price by restricting its output, nor does it need to lower its price to increase its sales volume.
C. It cannot obtain a higher price by increasing its output, nor does it need to lower its price to increase its sales volume.
D. It cannot obtain a lower price by restricting its output, nor does it need to lower its price to increase its sales volume.

Sagot :

GinnyAnswer

Final answer:

In a perfectly competitive market, firms face a perfectly elastic demand for their products, resulting in a horizontal demand curve where they can sell any quantity at the market price.


Explanation:

In a perfectly competitive market, a firm's demand curve is perfectly horizontal because it faces a perfectly elastic demand for its product. This means that the firm must accept the market price and can sell any quantity at that price, leading to a horizontal demand curve. By setting prices equal to the market price, firms in perfect competition maximize their profits.


Learn more about Perfect Competition here:

https://brainly.com/question/32771715


Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Your questions are important to us at Westonci.ca. Visit again for expert answers and reliable information.