The market demand curve in perfect competition is found

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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.

2. When there are large numbers of buyers and sellers,

a. consumers are able to find out about lower prices charged by other firms.

b. the products sold must look identical.

c. no one buyer or seller has any influence on price.

d. firms will move labor and capital in pursuit of profit-making opportunities to whatever business venture gives them the highest return on their investment.

Reference no: EM131244473

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