Horizontal Demand Curve

Horizontal Demand Curve - Earlier we studied the nature of...

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Horizontal Demand Curve: With constant market price an individual firm’s demand curve is perfectly flexible. It assumes the form of a horizontal straight line. Such a demand curve is also the Average and Marginal Revenue curve of a firm. P - AR = MR is the demand curve of a firm.
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Unformatted text preview: Earlier we studied the nature of a demand curve which is downward sloping. In a competitive market as well, there is a downward sloping demand curve. It is applicable to the entire market or the industry....
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