Asked by Marie Monville on Jul 08, 2024
Verified
A firm in a competitive industry takes account of the fact that the demand curve it confronts has a significant negative slope.
Competitive Industry
An industry structure where many firms compete for market share, with no single company dominating the market.
Demand Curve
A graphical representation showing the relationship between the price of a good and the quantity of that good that consumers are willing to buy.
- Comprehend how the organization of the market influences the conduct of businesses, especially in the context of perfect competition.
Verified Answer
AC
Athena Colleen BaenaJul 08, 2024
Final Answer :
False
Explanation :
In a competitive industry, each firm faces a perfectly elastic demand curve, meaning it perceives the demand curve as horizontal at the market price, not with a significant negative slope.
Learning Objectives
- Comprehend how the organization of the market influences the conduct of businesses, especially in the context of perfect competition.
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