What is the shape of the demand curve faced by a firm under perfect competition ...

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Economics- Phase (I & II) Consumption Function Add to Study Deck

What is the shape of the demand curve faced by a firm under perfect competition?

Horizontal

Vertical

Positively sloped

Negatively sloped

Explanation:

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.