Agriculture Is Generally Considered a Perfect Competition Industry with Largely

question 27

Multiple Choice

Agriculture is generally considered a perfect competition industry with largely commodity products.However,there is an aspect of the industry that can be classified as monopolistic competition with differentiated products and price premiums.Which part of the industry is it?

• A) Genetically modified wheat
• B) Corn for biodiesel
• C) Organic milk
• D) Fresh water salmon

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Definitions:

Market

A system or place where parties engage in exchange of goods, services, or information, characterized by supply and demand.

Positive Externality

A benefit that is enjoyed by a third-party as a result of an economic transaction in which they had no direct involvement.

New Technologies

Innovations or advancements in technology that can lead to improved processes, products, or capabilities, often contributing to economic growth and efficiency.

Positive Externality

A positive outcome experienced by a person who did not intentionally seek out that advantage, frequently tied to public goods or services.