Cotton farmers in Texas cannot influence the price of cotton so they are
What will be an ideal response?
price-takers.
Producers who cannot influence the product price are price takers.
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A deadweight loss of consumer and/or producer surplus occurs when:
a. producers fail to maximize profits. b. mutually beneficial transactions cannot be completed. c. consumers do not maximize their utility. d. the price of inputs increases.
A Nash equilibrium:
A. is reached when all players choose the best strategy they can, given the choices of all other players. B. is a point in a game when no player has an incentive to change his or her strategy, given what the other players are doing. C. is a stable outcome of a game. D. All of these statements are true.
If a monopolist was operating in a price range where marginal revenue was negative, it would be
A) in the inelastic range of the demand for its product. B) in the unit elastic range of the demand for its product. C) in the elastic range of the demand for its product. D) maximizing revenue but not profits.
A consumer's total transportation cost includes all of the following except which one?
A) the value of the consumer's time deciding which store to travel to B) the wear and tear on the consumer's car C) the cost of gasoline D) the value of the consumer's time getting to and from the store