posted by .

How can you obtain a downward sloping market demand curve from a horizontal firm demand curve experiencing perfect competition? If you sum up individual demand horizontally for the firm at the given market price will market demad not still be horizontal?

  • Economics -

    Unlike supply, the industry-wide demand curve is NOT the sum of the demand curves faced by each individual producing firm. The industry-wide demand curve is the result of summing individual consumer's demands

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Microeconomics

    It has been estimated that the world demand for wheat can be represented by thefunction P = 80 - 2Q. It has been further found that the countries supplying thismarket have marginal cost curves which when summed together are given by …
  2. Microeconomics

    The labor demand curve of a purely competitive seller: What exactly is your question?
  3. economics

    suppose a competitive market consists of identical firms with a constant long run marginal cost of $10. Suppose the demand curve is given by q=1000-p a)What are the price and quantity consumed in the long run competitive equilibrium?
  4. Mircoeconomics

    A significant difference between monopoly and perfect competition is that: A. free entry and exit is possible in a monopolized industry but impossible in a competitive industry. B. competitive firms control market supply but monopolies …

    Speedy Limousine-the prices of gasoline and wage rates for drivers has increased costs. So what is the initial condition and the direction of the firms's demand curve. and describe the type of demand shift if anyWhat would happen to …
  6. economics

    Can you please exlain to me if I'm wrong not just correct me. ps. Ceteris paribusor the following markets, show whether change causes a shift in supply curve, a shift in demand curve, a movement along the supply curve, and/or a movement …
  7. economics

    5. A market contains a group of identical price-taking firms. Each firm has a marginal cost curve MC(Q) = 2Q, where Q is the annual output of each firm. A study reveals that each firm will produce if the price exceeds $20 per unit …
  8. economics

    Q AC MC 1 4 12 2 8 20 3 12 28 4 16 36 5 20 44 6 24 52 7 28 60 8 32 68 9 36 76 suppose that there are 70 firms in operating in the industry. using the MC curve, find out how much output in total is delivered to the market at each price …
  9. economy

    consider a perfectly competitive market in which all firms have the same costs. choose the statement that is incorrect a)the market demand is elastic at the market price b)each firm takes the market price as given and produces its …
  10. Econ

    Please help me and review my answers for my quiz. Let me know which ones you believe to be right and wrong. 1. When P = AR = MR = AC = MC: X economic profits are positive. economic profits are zero. economic profits are negative. normal …

More Similar Questions