what-is-the-primary-implication-of-a-horizontal-demand-curve-for-a-firms-product

Question

What is the primary implication of a horizontal demand curve for a firm's production strategy in a perfectly competitive market?

Accepted Answer

The firm can produce any quantity without affecting the market price.

Answer

The firm should focus on product differentiation.

Answer

The firm can influence the market price by adjusting production.

Answer

The firm must limit production to maintain the market price.