what-is-the-implication-of-a-perfectly-elastic-demand-curve-for-firms-in-a-perfe

Question

What is the implication of a perfectly elastic demand curve for firms in a perfectly competitive market?

Accepted Answer

Firms can sell any quantity at the market price without affecting the price.

Answer

Firms face a downward-sloping demand curve.

Answer

Firms can influence the market price by changing their output.

Answer

Firms must lower their prices to sell more quantity.