In commodity markets and industries with competitive structure, producers:
A) adjust output in response to price changes.
B) adjust price in response to output changes.
C) shift their demand curves to the right.
D) achieve economies of scale.

Question

Quizplus · Accepted Answer

Producers in competitive markets and industries adjust their output levels in response to price changes to maximize profits or minimize losses, as they are price takers and cannot influence market prices directly.

In Commodity Markets and Industries with Competitive Structure, Producers