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What does perfectly elastic demand curve faced by a competitive firm indicate? - Economic Applications

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Question

What does perfectly elastic demand curve faced by a competitive firm indicate?

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Solution

A perfectly elastic demand curve faced by a competitive firm indicates that a price is given to the firm, and the firm has no control over the given price. 

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Chapter 5: Nature and Structure of Markets - QUESTION BANK [Page 141]

APPEARS IN

Goyal Brothers Prakashan Economic Applications [English] Class 10 ICSE
Chapter 5 Nature and Structure of Markets
QUESTION BANK | Q 28. | Page 141
Goyal Brothers Prakashan Economics [English] Class 10 ICSE
Chapter 5 Meaning and Types of Markets
QUESTION BANK | Q 32. | Page 119

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