If individual firms face a horizontal demand curve at a given market price, A. price is equal to average variable cost. B. price is equal to marginal revenue. C. price is equal to average total cost. D. price is equal to marginal cost.

In a perfectly competitive market, there are large number of buyers and sellers in a market. Single buyer and single seller won't be able to affect the price of the market.

Price of the product will be determined by the market forces. In this market, individual firms are generally facing a horizontal demand curve where price is equal to the marginal revenue. Because demand curve is parallel to x-axis and it is perfectly elastic, so there will be no changes in prices if there is a change in a demand.

Profit maximizing condition for the competitive firms is a point where price is equal to the marginal cost.

If individual firms face a horizontal demand curve at a given market​ price, A. price is equal to average variable cost. B. price is equal to marginal revenue. C. price is equal to average total cost. D. price is equal to marginal cost.

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If individual firms face a horizontal demand curve at a given market price, A. price is equal to average variable cost. B. price is equal to marginal revenue. C. price is equal to average total cost. D. price is equal to marginal cost.