If the demand curve for a firm's output is perfectly elastic, then the firm is:

CA Foundation · Business Economics · MTP · January 2025
If the demand curve for a firm's output is perfectly elastic, then the firm is:
(A) A. a monopolist.
(B) B. perfectly competitive.
(C) C. an oligopolist.
(D) D. monopolistically competitive.

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. perfectly competitive.

Topics: Price Determination in Different Markets

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