The market demand curve in perfect competition is found by

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All of the following are true regarding perfectly competitive price determination EXCEPT Select one:

a. the individual firm is known as a market price maker.

b. the market price is determined by the interactions among all buyers (households) and firms.

c. the individual firm's marginal revenue curve is horizontal at the market price.

d. the individual firm takes the market price as given.

The market demand curve in perfect competition is found by

a. horizontally summing the demand curves of the individual consumers.

b. the interaction of supply and demand at the individual firm and consumer levels.

c. utility maximizing behavior of the "representative consumer."

d. horizontally summing the supply curves of the individual firms in the industry.

Reference no: EM131244474

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