Question

g The perfectly competitive firm faces a downward sloping demand curve. a horizontal supply function. perfectly elastic demand. constant marginal costs.

Answer 1

Answer:

Option C (perfectly elastic demand) seems to be the correct alternative.

Explanation:

• Large companies manufacture similar products which cannot be separated from those manufactured by certain rivals.  
• Price increases become decided on the market as well as firm price changes, marketing their production at either the current market value. Increasing organizations face a relatively elastic consumer surplus equivalent to something like the sale value.  

All other alternatives in question are not relevant to the unique scenario. But that's the correct answer above.