If an individual farmer in a perfectly competitive agricultural market raises her price above the market price,the farmer will
A)Not sell any product.
B)Earn greater total revenue.
C)See other farmers follow the price rise.

Question

Quizplus · Accepted Answer

In a perfectly competitive agricultural market, the individual farmer is a price taker and cannot raise her price above the market price without losing all her customers. This is because there are many other farmers selling the same product at the market price and consumers have no reason to pay a higher price from a single farmer. Therefore, the farmer will not sell any product if she raises her price above the market price.

If an Individual Farmer in a Perfectly Competitive Agricultural Market