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.

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Definitions:

Net Income

The total earnings of a company after all expenses and taxes have been deducted from total revenue.

Social Security Administration

The Social Security Administration is a U.S. government agency responsible for administering social insurance programs, including retirement, disability, and survivors' benefits.

Rate Of Return

A measure of the profitability of an investment, calculated as a percentage of the original investment.

Net Value

The difference between the total benefits and total costs associated with an economic activity or transaction.