As a farmer,Charles Forsythe is familiar with the economics of perfect competition.How is the price at which he sells his corn determined?
A) It is determined by Charles because he has the product that many people want.
B) The price is determined by combining the actions of all buyers and all sellers together.
C) The price he will receive is primarily determined by the buyer at the local grain bin.
D) The government sets the price of the corn to level the playing field for everyone.
E) The price will be approximately 25 percent higher than what other farmers are selling the same corn for because Charles is an astute businessperson.

Question

Quizplus · Accepted Answer

In perfect competition, the price of a product is determined by the market forces of supply and demand, meaning that the actions of all buyers and sellers in the market determine the price. This includes the price that Charles Forsythe receives for his corn. It is not determined solely by him or the buyer at the local grain bin, and it is not set by the government or based on Charles' business prowess.

As a Farmer,Charles Forsythe Is Familiar with the Economics of Perfect