A perfectly elastic demand curve implies that the firm

A) must lower price to sell more output.
B) can sell as much output as it chooses at the existing price.
C) realizes an increase in total revenue that is less than product price when it sells an extra unit.
D) is selling a differentiated (heterogeneous) product.

Perfectly Elastic Demand Curve

A demand curve with infinite elasticity, where consumers are willing to purchase any amount of a product at a certain price, but none at any slightly higher price.

Output

Refers to the total amount of goods or services produced by an individual, firm, or country within a specific period.

Firm

A business organization, such as a corporation or partnership, that sells goods or services for profit.