Under perfect competition, the demand curve facing the firm isdetermined by A. t

Question

Under perfect competition, the demand curve facing the firm isdetermined by

A.

the intersection of the industry demand and supply curves.

B.

the tastes and preferences of consumers.

C.

utility maximizing behavior on the part of consumers.

D.

the willingness of the firm to supply the good.

A.

the intersection of the industry demand and supply curves.

B.

the tastes and preferences of consumers.

C.

utility maximizing behavior on the part of consumers.

D.

the willingness of the firm to supply the good.

Explanation / Answer

IN general, demand depends on the  commodity price,the prices of related commodities, and consumers' incomes andtastes. But in perfect competition the first two cede to themarginal cost, and infinite supply is available.

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