Competitive firms have
A)downward-sloping demand curves, and they can sell as much output as they desire at the market price.
B)downward-sloping demand curves, and they can sell only a limited quantity of output at each price.
C)horizontal demand curves, and they can sell as much output as they desire at the market price.
D)horizontal demand curves, and they can sell only a limited quantity of output at each price.

Question

Quizplus · Accepted Answer

Competitive firms face horizontal demand curves because they are price takers and can sell as much output as they desire at the market price.

Competitive Firms Have