The Wheeler Wheat Farm sells wheat to a grain broker.Since the market for wheat is generally considered to be competitive, the Wheeler Farm:

Question

Quizplus · Accepted Answer

Since the market for wheat is considered to be competitive, the price for wheat is determined by market forces and the Wheeler Farm does not have the ability to choose the price at which it sells its wheat. However, it still has control over the quantity of wheat it produces and incurs fixed costs of production. It is also possible for the farm to earn an accounting profit if the price it receives for its wheat is higher than its total costs.

The Wheeler Wheat Farm Sells Wheat to a Grain Broker