In nearly every example of demand in this book, a negative relationship exists between the market price and the quantity demanded.
Why doesn't this relationship exist for a firm operating in a perfectly competitive market?
a)Because in a perfectly competitive market, each individual firm cannot decide how much of its product to sell.
b)The statement is not true. In a perfectly competitive market, the relationship between the market price and quantity demanded is negative.
c)Because in a perfectly competitive market, each individual firm has some control over the price of its product.
d)Because in a perfectly competitive market, each individual firm does not have the market power to set prices. Each individual firm is a price taker.