The Doris Dairy Farm sells milk to a dairy broker in Prairie du Chien,Wisconsin.Because the market for milk is generally considered to be competitive,the Doris Dairy Farm does not

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Since the market for milk is considered competitive, the Doris Dairy Farm has no control over the price at which it sells milk. The broker will offer a market price, and the farm can either accept or reject it. The farm can, however, choose the quantity of milk to produce based on its resources and production technology. It will seek to maximize profit by setting marginal revenue equal to marginal cost, but this does not mean that it has no fixed costs of production.

The Doris Dairy Farm Sells Milk to a Dairy Broker