Farmers typically sell their products in highly competitive markets and buy in imperfectly competitive markets.

Question

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Farmers often face highly competitive markets when selling their products due to the large number of producers and the relatively homogeneous nature of agricultural goods. However, when buying inputs like seeds, fertilizers, and machinery, they encounter imperfectly competitive markets, where a few companies may dominate, leading to less favorable prices and terms for the farmers.

Farmers Typically Sell Their Products in Highly Competitive Markets and Buy