For purely competitive industry, a fundamental requirement of the demand curve faced by individual firms is that it should be?
Question 1 Report
For purely competitive industry, a fundamental requirement of the demand curve faced by individual firms is that it should be?
Answer Details
For a purely competitive industry, the demand curve faced by individual firms is perfectly price elastic. This means that any change in price by the individual firm will result in a total loss of sales, as consumers will simply purchase from another firm offering the same product at a lower price. Therefore, a perfectly price elastic demand curve is a fundamental requirement for firms operating in a purely competitive industry, as it forces firms to accept the prevailing market price and operate efficiently in order to remain profitable.
Download The App On Google Playstore
Everything you need to excel in your exams
Personalized AI Learning Chat Assistant
200,000+ Exam Questions Across IGCSE, JAMB, WAEC & NECO
Over 3,900 Lesson Notes
Offline Support - Learn Anytime, Anywhere
Green Bridge Timetable
Literature Summaries & Potential Questions
Track Your Performance & Progress
In-depth Explanations for Comprehensive Learning