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Suppose the wheat industry is perfectly competitive with a market price of​ $4 per bushel. if farmer brown charged​ $5 per​ bushel, how many bushels would farmer brown​ sell

1 Answer

4 votes
He would not sell any bushels. Since his price is above the market price in a perfectly competitive market, the buyers would have all the information they require to make purchases at other sellers who are charging the market price (or less) for the wheat.
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User Virtualdvid
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