Farmers cannot individually affect market price because
A)There is an infinite demand for their goods.
B)Demand is perfectly inelastic for the farmer's produce.
C)Their individual production is insignificant relative to the production of the market.
D)The government exercises control over the market power of competitive firms.

Question

Quizplus · Accepted Answer

The individual production of a single farmer is usually small compared to the overall production of the market. This means that the farmer's output has only a small impact on the market price, and they cannot individually affect it. Factors like supply and demand, weather conditions, and government policies also have significant impacts on market prices, which farmers cannot control individually. Option A and B are incorrect as they assume unrealistic conditions like infinite demand and perfectly inelastic demand. Option D is incorrect as it talks about government control over market power, which is not relevant to farmers' ability to affect prices.

Farmers Cannot Individually Affect Market Price Because