- #1
HummusAkemi
- 3
- 0
Hi,
For a perfectly competitive firm, the demand curve is horizontal, and yet how do you have a downward sloping demand curve for the whole industry, assuming you're using horizontal summation? The curve should get flatter if you're summing them, not steeper. Also, is there any marginal revenue curve associated with the demand curve in a perfectly competitive industry (not firm)?
Sorry if noob question.
For a perfectly competitive firm, the demand curve is horizontal, and yet how do you have a downward sloping demand curve for the whole industry, assuming you're using horizontal summation? The curve should get flatter if you're summing them, not steeper. Also, is there any marginal revenue curve associated with the demand curve in a perfectly competitive industry (not firm)?
Sorry if noob question.