A perfectly elastic demand curve implies that the firm:Multiple Choicemust lower price to sell more output.can sell as much output as it chooses at the existing price.realizes an increase in total revenue which is less than product price when it sells an extra unit.is selling a differentiated (heterogeneous) product.

Why is the demand curve for a perfectly competitive firm perfectly elastic?Multiple choice question.It cannot obtain a higher price by restricting its output, nor does it need to lower its price to increase its sales volumeIt cannot obtain a lower price by restricting its output, nor does it need to lower its price to increase its sales volumeIt cannot obtain a higher price by increasing its output, nor does it need to lower its price to increase its sales volumeIt cannot obtain a higher price by restricting its output, nor does it need to raise its price to increase its sales volume

In a perfectly competitive market the demand curve faced by an individual firm is: Group of answer choicesperfectly inelastic.relatively inelastic.perfectly elastic.relatively elastic.

Which of the following is characteristic of a purely competitive seller's demand curve?Multiple ChoicePrice and marginal revenue are equal at all levels of output.Average revenue is less than price.Its elasticity coefficient is 1 at all levels of output.It is the same as the market demand curv

The elasticity of demand for a product will be higherChoose one optionAll the options are validThe more available are substitutes for that productThe more its buyers demand loyaltyThe more the product is considered a necessity by its buyers

The demand curve for a perfectly competitive firm's product is a (vertical/horizontal) line originating at the market price.