In perfect competition, an individual firm Topic: Market Demand/Firm Demand
A. faces unitary elasticity of demand. Skill: Conceptual
B. has a price elasticity of supply equal to one. 14) In perfect competition, the price of the product is
C. faces a perfectly elastic demand. determined where the industry
D. has perfectly elastic supply. A) elasticity of supply equals the industry elasticity
Answer:C
In perfect competition, an individual firm Topic: Market Demand/Firm Demand
A. faces unitary elasticity of demand. Skill: Conceptual B. has a price elasticity of supply equal to one. 14) In perfect competition, the price of the product is C. faces a perfectly elastic demand. determined where the industry D. has perfectly elastic supply. A) elasticity of supply equals the industry elasticity