The Expression "The Farmer Is a Price Taker,not a Price

question 54

Multiple Choice

The expression "the farmer is a price taker,not a price maker," refers to the fact that

• A) the market demand curve for food is perfectly elastic.
• B) demand for agricultural products has declined steadily throughout the twentieth century.
• C) prices of farm goods are generally set by government.
• D) in perfect competition, no one producer can control prices.
• E) shifts in the demand and supply for farm products have little impact on farm prices.

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Definitions:

Internal Accounting System

The accounting system that collects, aggregates, and generates and distributes budgeted and actual financial and cost information within the firm for use by executives and managers for both decision making and control.

Management Accounting

The accounting system used within the organization to help the organization achieve its goals.

Financial Accounting

Accounting for the revenues, expenses, assets, liabilities, and equities of an organization, concentrating on external users (shareholders, lenders, and government). Constrained by FASB rulings and other generally accepted accounting principles.

Tax Purposes

The reasons or objectives related to the calculation and payment of taxes to comply with legal requirements.