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What is the shape of the demand curve faced by a...

This question belongs to Commerce Economics
Economics
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What is the shape of the demand curve faced by a firm under perfect competition?

Answer & Solution
Correct Answer: Option A
The shape of the demand curve faced by a firm under perfect competition is Horizontal. The demand curve faced by a firm in a perfectly competitive market is infinitely elastic. Graphically, this means that it is a horizontal line at the market price.
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