Demand curve of perfectly competitive market form is a horizontal straight line parallel to X-Axis. It happens because:

CA Foundation · Business Economics · MTP · September 2024
Demand curve of perfectly competitive market form is a horizontal straight line parallel to X-Axis. It happens because:
(A) A. Selling costs are zero
(B) B. There is freedom of entry and exit
(C) C. Firm is a price-taker
(D) D. None of these

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. Firm is a price-taker

Topics: Price Determination in Different Markets

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