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The demand curve facing a perfectly competitive firm is:

A. upward sloping.
B. perfectly inelastic.
C. downward sloping.
D. perfectly elastic.

User Jldupont
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1 Answer

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Final answer:

The demand curve facing a perfectly competitive firm is perfectly elastic and can sell any quantity at the market price, while a monopolist faces a downward-sloping demand curve.

Step-by-step explanation:

The demand curve facing a perfectly competitive firm is perfectly elastic. This means that the firm can sell any quantity it wishes at the prevailing market price. Unlike a monopolist, who is the only firm in the market and faces a downward-sloping demand curve, a perfectly competitive firm can sell its output at the same price regardless of the quantity.

User Numyx
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