What is the shape of the demand curve in case of perfect competition ?
The demand curve faced by an individual firm under perfect competition is parallel to the X-axis. The firm takes the market price as given, so its average revenue remains…
Choose your answer
What is the shape of the demand curve in case of perfect competition ?
Answer and explanation
Correct answer A
The demand curve faced by an individual firm under perfect competition is parallel to the X-axis. The firm takes the market price as given, so its average revenue remains constant as its own output changes.
Practice for these exams
-
Himachal Pradesh SET (HP SET)