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What best describes the demand curve in a perfectly competitive market?
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.
Which of the following statements describes a firm in a perfectly competitive market?
Which of the following best describes a perfectly competitive market? Many small firmsl producing a homogeneous product and facing no significant barriers to entry.
Which of the following describes a characteristic of a perfectly competitive market group of answer choices?
The correct answer is option c. Firms can exit and enter the market freely. A perfectly competitive market is a theoretical market where firms can enter and exit the market freely or without cost. Due to this, the market structure has a large pool of sellers or firms competing to sell identical goods and services.
Which of the following statements is true of a perfectly competitive market?
The correct answer is b. The firm cannot affect the market price for its good. In a perfectly competitive market, a single firm cannot influence the market price.