JAMB Economics 2018 Objective — Question 27
Question 27 of 40 from the Joint Admissions and Matriculation Board (JAMB) Economics 2018 Objective paper, with the correct answer and a full explanation.
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The demand curve for a perfectly competitive firm is represented by the AR curve as shown below. This curve is
- A. Vertical
- B. HorizontalCorrect
- C. Downward sloping
- D. Upward sloping
Explanation
Since a perfectly competitive firm is a price-taker, its AR (=demand) curve is horizontal at the market price (P=AR=MR).
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