Firm's demand curve as a horizontal straight line under perfect competition shows that a individual producer has no control over price of his product. Is it true?
Dear Student
Yes, it is true. Under perfect competition, the demand curve of the firm is a horizontal straight line parallel to X-axis. It implies the firm will sell the product at the prevailing price which is determined by the industry. The individual firm cannot influence the price.
Regards
Yes, it is true. Under perfect competition, the demand curve of the firm is a horizontal straight line parallel to X-axis. It implies the firm will sell the product at the prevailing price which is determined by the industry. The individual firm cannot influence the price.
Regards