56) Which of the following statements is correct about the demand curve of the p

Question

56) Which of the following statements is correct about the demand curve of the perfectly competitive 56) industry? A) The market demand curve of the perfectly competitive industry is downward sloping, so the B) The market demand curve of perfect competition is vertical because the individual consumers C) The demand curve of the perfectly competitive industry is horizontal as are the demand D) The market demand curve of the perfectly competitive industry is downward sloping while demand curves of the individual firms are also downward sloping. are buying a homogeneous product curves facing the individual firms. the demand curve facing an individual firm is horizontal.

Explanation / Answer

Answer

Option D

the demand curve for the industry is downward sloping and the demand curve for the firm is horizontal because there are many firms with identical product and no individual can influence price.

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