Suzana owns a farm that grows mangos in a perfectly competitive market. If she decides to double the quantity of mangos she sells, how would that affect the market price for mangos?

Question

Quizplus · Accepted Answer

In a perfectly competitive market, individual producers are price takers, meaning they have no control over the market price. Doubling the quantity of mangos Suzana sells would not affect the market price because her production is too small relative to the total market to influence price.

Suzana Owns a Farm That Grows Mangos in a Perfectly