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The market for bath sponges has many rms and each rm produces an identical product. As such, each rm is considered a price taker. Therefore,

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The market for bath sponges has many rms and each rm produces an identical product. As such, each rm is considered a price taker. Therefore, the demand curve each bath sponge producer faces: 0 will be downward-sloping, with the same slope as the the market demand curve. 0 will be horizontal. Q will be vertical, because with identical products, quantity is not responsive to price. Q cannot be determined from the information given

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