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In competitive markets, farmers adopt new technologies that will eventually reduce their revenue because a. each farmer is a price taker. b. farmers are short-sighted. c. regulation requires the use of best practices. d. consumers pressure farmers to lower prices.

Chapter 5, Problem 9

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QUESTION:

In competitive markets, farmers adopt new technologies that will eventually reduce their revenue because

a. each farmer is a price taker.

b. farmers are short-sighted.

c. regulation requires the use of best practices.

d. consumers pressure farmers to lower prices.

Questions & Answers

QUESTION:

In competitive markets, farmers adopt new technologies that will eventually reduce their revenue because

a. each farmer is a price taker.

b. farmers are short-sighted.

c. regulation requires the use of best practices.

d. consumers pressure farmers to lower prices.

ANSWER:

Step 1 of 2

Perfect competition: Many buyers and sellers, free entry and exit, and selling identical products characterize a perfectly competitive market. A perfectly competitive firm is known as a price taker because the market supply and demand forces determine the price.

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