Solution Found!
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(choose chapter or problem)
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.