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The above figure illustrates a perfectly competitive firm curve A represents the

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What kind of curve does a perfectly competitive firm have?

A perfectly competitive firm's demand curve is a horizontal line at the market price. This result means that the price it receives is the same for every unit sold.

What does the perfectly competitive firms supply curve depict?

The individual supply curve shows how much output a firm in a perfectly competitive market will supply at any given price. Provided that a firm is producing output, the supply curve is the same as marginal cost curve.

What is perfect competition illustrate with an example?

Perfect competition is an economic term that refers to a theoretical market structure in which all suppliers are equal and overall supply and demand are in equilibrium. For example, if there are several firms producing a commodity and no individual firm has a competitive advantage, there is perfect competition.

What is the shape of a marginal revenue curve for a perfectly competitive firm?

For a perfectly competitive firm, the marginal revenue (MR) curve is a horizontal straight line because it is equal to the price of the good, which is determined by the market, shown in Figure 3.

figure illustrates perfectly competitive firm curve represents

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