In a case whereby wheat is produced in a perfectly competitive market if market demand increases, the individual wheat farmer's marginal revenue will and his profit-maximizing rate of output will increase.
Perfect competition can be described as the kind of competition that do take pace a s a result of how the companies sell identical products.
It should be noted that in this market, the companies can exit at any time they want and in this market the share does not influence price in the market because there are alot of the firms there.
Therefore option A is correct.
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As wheat is produced in a perfectly competitive market, if market demand increases, the individual wheat farmer's marginal revenue will and his profit-maximizing rate of output will increase.
Perfect market competition refers to the type of market structure where all producers and consumers have proper and symmetric information about the market and product.
Perfect market competition has the features of a large number of buyers, a large number of sellers and all products are homogeneous.
Basically, the perfect competitive market occurs when all the companies sell identical or homogeneous products.
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