Question

The demand curve perceived by a perfectly competitive firm

A. shows that such a firm is a price-maker
OB. shows economies of scale over a large range of output
OC. is horizontal
OD. all of the above

Answer 1

answer is option C

Explanation:BECAUSE the demand curve under a perfectly competitive firm is equal to AR and price which are horizontal i.e. parallel to y axis

a firm under this competition is a price taker which means to give tough competition to other competitors it cannot play price game so every competitor takes price from the industry