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26 Nov 2019

if the demand curve faced by a firm is horizontal, then the firm is _ and a __

a. a monopoly; price taker

b. perfectly competitive; price maker

c. perfectly competitve; price taker

d. monoply; price maker

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Related questions

1. Which of the following is a difference between a perfectly competitive market and a monopoly?

A. There are huge barriers to entry in a perfectly competitive market, while there are no barriers to entry in a monopoly.

B. The market demand curve faced by a perfectly competitive firm is horizontal, while the market demand curve in a monopoly is downward-sloping.

C. The sellers in a perfectly competitive market are price-makers, while a seller in a monopoly market is a price-taker.

D. The equilibrium price in a perfectly competitive market exceeds marginal revenue, while the equilibrium price in a monopoly equals marginal revenue.

2. Which of the following firms is likely to have the highest market power?

A. An oligopoly with homogeneous products

B. A monopoly

C. A monopolistic competitor

D. A perfectly competitive firm

graygrasshopper945

If a firm is a price taker then the demand curve for the firm's product is:

a. equal to the total revenue curve

b. perfectly inelastic

c. perfectly elastic

d. unit elastic

raspberryimpala422

Provide your perspective on the following questions, and provide specific examples to support your answers. Why is the demand curve horizontal in a perfectly competitive market structure? Explain in terms of the basic market attributes. Given that the firm is a "price taker" based on your logic, is the price also the average revenue? Given that the firm is a "price taker" based on the horizontal demand curve, is the demand curve also the marginal revenue curve? Explain the relationships among demand, price, average revenue, and marginal revenue for this type of market structure.