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g The perfectly competitive firm faces a downward sloping demand curve. a horizontal supply function. perfectly elastic demand. constant marginal costs.

1 Answer

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Answer:

Option C (perfectly elastic demand) seems to be the correct alternative.

Step-by-step explanation:

  • Large companies manufacture similar products which cannot be separated from those manufactured by certain rivals.
  • Price increases become decided on the market as well as firm price changes, marketing their production at either the current market value. Increasing organizations face a relatively elastic consumer surplus equivalent to something like the sale value.

All other alternatives in question are not relevant to the unique scenario. But that's the correct answer above.

User Patrick Da Silva
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