Which of the following characterizes a typical agricultural market?
A)A horizontal demand curve for the industry.
B)Market power on the part of each farmer.
C)A downward-sloping demand curve for the firm.
D)Low barriers to entry.

Question

Quizplus · Accepted Answer

Agricultural markets are typically characterized by low barriers to entry, meaning it is relatively easy for new farmers to start producing and selling agricultural products. This is due to the fundamental nature of agricultural production, which often requires land and basic farming equipment, but not necessarily significant capital investment or technical knowledge that can't be acquired. This openness contributes to the competitive nature of agricultural markets.

Which of the Following Characterizes a Typical Agricultural Market