For a perfectly competitive firm, the a.demand curve is the same as the marginal cost curve....

For a perfectly competitive firm, the

a.demand curve is the same as the marginal cost curve.

b.demand curve is the same as the marginal revenue curve.

c.demand curve lies above the marginal revenue curve.

d.demand curve is downward-sloping.

e.none of the above

Expert Solution

The answer is it is as the marginal revenue curve.

For a perfectly competitive firm, the demand curve is a straight horizontal line, means an equal price is offered at all quantities to all the buyers. It also has a perfect elasticity i.e. if the price changes even a little bit, the quantity demanded is reduced to zero, making it perfectly elastic.

Rahul Sunny answered 2 years ago

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