Help pls..economics..?
DOES KANSAS WHEAT FARMER FIT THE PERFECTLY COMPETITIVE MARKET STRUCTURE?EXPLAIN..
Answer:
In perfect competition neither the consumer or producer has the ability to influence prices in the market. Agricultural markets like a Kansas Wheat Farmer does fit the perfectly competitive market structure because there are a large number of suppliers and the products are almost always substitutable. Therefore if those many suppliers have products that are no different from each other, prices cannot fluctuate to a large degree, but rather remain constant causing perfect competition.
well it depends, does this wheat farmer's supply and demand go by market forces or does the government intervene when there is a problem ?
To be a perfectly competitive market the kansas wheat farmers need to have these characteristics:
- Theres a lot of suppliers and consumers.
- One farmer have little power to change the price of all the wheat. This means that the market forces determinated the price, not the producer.
- You can enter the bussines and go out of them very easy and without a high cost of it.
Normally all kinda of farmers can be compared to a perfectly competitive market structure because they have these characteristics.
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Answer:
In perfect competition neither the consumer or producer has the ability to influence prices in the market. Agricultural markets like a Kansas Wheat Farmer does fit the perfectly competitive market structure because there are a large number of suppliers and the products are almost always substitutable. Therefore if those many suppliers have products that are no different from each other, prices cannot fluctuate to a large degree, but rather remain constant causing perfect competition.
well it depends, does this wheat farmer's supply and demand go by market forces or does the government intervene when there is a problem ?
To be a perfectly competitive market the kansas wheat farmers need to have these characteristics:
- Theres a lot of suppliers and consumers.
- One farmer have little power to change the price of all the wheat. This means that the market forces determinated the price, not the producer.
- You can enter the bussines and go out of them very easy and without a high cost of it.
Normally all kinda of farmers can be compared to a perfectly competitive market structure because they have these characteristics.
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