In a perfectly competitive market structure, because an individual firm faces a perfectly elastic demand curve at the prevailing market price, the aggregate industry demand curve is also perfectly elastic.
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The statement is False. In perfect competition, an individual firm faces a horizontal (perfectly elastic) demand curve because it is a price taker, but the aggregate industry demand curve is downward-sloping.
The statement is false because an individual firm's perfectly elastic demand curve stems strictly from its price-taker status in a market of numerous small producers, whereas the aggregate industry demand curve slopes downward from left to right in accordance with the law of demand.
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Distinction between firm demand curve (perfectly elastic) and industry demand curve (downward-sloping) under perfect competition.