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If a firm is a price taker, then the demand curve for the firm's product is

a. equal to the total revenue curve.

b. unit plastic.

c. perfectly elastic.

d. perfectly inelastic.

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The Correct answer for If a firm is a price taker, then the demand curve for the firm's product is

A company that takes prices does not decide the price of the product. The price is usually determined by market forces. The company gets the price and must decide to produce at that price. The demand curve in this case is perfectly elastic.

If a company raises its prices, consumers will turn to other cheaper companies. Companies in a perfectly competitive market take prices. Companies in the imperfect competition are price creators.

The correct answer is perfectly elastic.

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