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Figure 1 X 5- + S 4- 3- Price (dollars) 2- 1- D 100 200 300 400 Quantity (millions)Figure 2 + 5- 4- 3- D
Figure 1 X 5- + S 4- 3- Price (dollars) 2- 1- D 100 200 300 400 Quantity (millions)Figure 2 + 5- 4- 3- D Price (dollars) 2- 1- 0- N- 3 4 Quantity (thousands)In the accompanying figures, we explain the difference between the demand curve for the market structure of perfect competitition and the demand curve facing an individual firm in that industry. Review that figure and answer the following question. Click the icon to view the first figure. Click the icon to view the second figure. The demand curve for an individual firm is horizontal at the current market price because O A. the market price is constant. O B. each business is a price taker, but can sell as much output as it can produce at the market price. O C. changes in the firm's output also change the market price. O D. the firm's revenues are constant
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