If the Wheat Industry Is Perfectly Competitive with a Market

question 42

Multiple Choice

If the wheat industry is perfectly competitive with a market price of $4 per bushel and Farmer Brown charged $5 per bushel,how many bushels would Farmer Brown sell?

• A) some, but fewer than he would at a price of $4
• B) more than he would at a price of $4
• C) just as many as he would at a price of $4
• D) none
• E) More information is needed about the prices charged by the other wheat farmers.