Which of the following statements is correct?

1 The demand curve for a purely competitive firm is perfectly elastic, but the demand curve for a purely competitive industry is downsloping.

2 The demand curve for a purely competitive firm is downsloping, but the demand curve for a purely competitive industry is perfectly elastic.

3 The demand curves are downsloping for both a purely competitive firm and a purely competitive industry.

4 The demand curves are perfectly elastic for both a purely competitive firm and a purely competitive industry.

The correct Statement is The demand curve for a purely competitive firm is perfectly elastic, but the demand curve for a purely competitive industry is downsloping. Thus option 1st is correct.

What is Demand Curve?

Demand curve refers to the Graphical presentation of the relationship of the price and the quantity of a particular firm.

Those firms that engages in pure competition, the demand curve is entirely elastic due to the the marginal revenue curve aligns with the firm's equilibrium price since each firm acts as a price taker.

The demand curve for a purely competitive industry is downsloping because as the level of the price increases for the product the demand of the product decreases which implies decreased production.

Thus option 1st is correct.

Learn more about demand curve here:

https://brainly.com/question/5217258

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