Suppose that a large dairy farmer is able to raise the market price of milk by withholding milk supply from the market. In this instance,

Question

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If a large dairy farmer is able to raise the market price of milk by withholding milk supply from the market, it signifies that the market is not perfectly competitive. In a perfectly competitive market, no single supplier can influence the market price. Therefore, the milk market being influenced by the actions of a single supplier suggests that the market is imperfectly competitive.

Suppose That a Large Dairy Farmer Is Able to Raise