Farmers who wish to sell grain cannot negotiate a price; they either accept the price offered or decline to sell their crop. This is an example of
A) low barriers to entry.
B) availability of substitutes.
C) intense rivalry.
D) powerful buyers.

Question

Quizplus · Accepted Answer

Farmers have limited bargaining power and are at the mercy of powerful buyers who set the price. They have few alternatives to sell their crop and hence, have to accept the offered price. This situation indicates the presence of powerful buyers.

Farmers Who Wish to Sell Grain Cannot Negotiate a Price;