A FIRM faces an almost perfectly flat or horizontal demand curve in a(an) ______________ market situation.
A) monopolistic competition
B) monopoly
C) pure competition
D) oligopoly
E) None of the above--demand curves are always down-sloping.

Question

Quizplus · Accepted Answer

In a pure competition market situation, there are a large number of buyers and sellers with homogeneous products, and no one firm has control over the market price. Therefore, a firm's demand curve in such a situation is almost perfectly flat or horizontal.

A FIRM Faces an Almost Perfectly Flat or Horizontal Demand