The relation between a firm’s demand curve and market demand curve can be explained in two w

The relation between a firm’s demand curve and market demand curve can be explained in two w

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The relation between a firm’s demand curve and market demand curve can be explained in two ways. When there are innumerable firms under competition each firm’s demand quantity appears as a dot or a point (f1, f2. ..fn) on the market demand curve. Again with each addition of a firm to the market the industry demand curve becomes
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Unformatted text preview: more flexible; structurally it gets flatter. It starts moving in the direction of DD DD1 DD2 and ultimately assumes the form of a horizontal straight line. Therefore there is no contradiction between the horizontal demand curve of a firm and the downward sloping demand curve of a market or industry....
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This note was uploaded on 11/26/2011 for the course ECON MICRO ec 201 taught by Professor - during the Fall '10 term at Montgomery.

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