Thus, each firm is a price-taker and faces a horizontal demand curve. Individual agricultural producers come close to fitting this definition. That is why the estimated demand elasticities presented above, while not infinite, are very large in size.
Thus, each firm is a price-taker and faces a horizontal demand curve. Individual agriculturalproducers come close to fitting this definition. That is why the estimateddemand elasticities presented above, while not infinite, are very large in size.