26 Jul WHY IS THE DEMAND CURVE HORIZONTAL IN A PERFECTLY COMPETITIVE MARKET STRUCTURE?
Provide your perspective on the following questions and provide specific examples to support your a Show more Provide your perspective on the following questions and provide specific examples to support your answers. Why is the demand curve horizontal in a perfectly competitive market structure? Explain in terms of the basic market attributes. Given that the firm is a price taker based on your logic is the price also the average revenue? Given that the firm is a price taker based on the horizontal demand curve is the demand curve also the marginal revenue curve? Explain the relationships among demand price average revenue and marginal revenue for this type of market structure. Show less
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