Frank is a barley farmer in a perfectly competitive market. The market price of barley is $250 per ton. If Frank charges $245 per ton, he will

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If Frank charges $245 per ton, which is $5 less than the market price, he will be earning $5 less profit per ton of barley sold. Therefore, his profitability will decrease by $5 per ton. It would be more beneficial for him to sell at the market price of $250 per ton.

Frank Is a Barley Farmer in a Perfectly Competitive Market