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Your Local Farmer Has Many Competitors, and He Operates in a Market

Question 3

Multiple Choice

Your local farmer has many competitors, and he operates in a market structure known as perfect competition. This means that price is determined outside of the individual farmer's ability to determine his selling price. Therefore, the farmer is


A) a price maker and can therefore charge different customers different prices.
B) always able to price produce above the competition and earn a larger profit.
C) never able to determine any prices he charges for anything, such as soybeans.
D) a price taker and cannot affect the price of the produce sold to a great degree.

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