Question

The marketplace sets the price for wheat, so farmers who are trying to sell their wheat crops do not need a pricing strategy and do just a little advertising when a crop comes in. The wheat is sold in a(n) __________ type of competitive market.

Answer 1

Answer: perfect

Explanation:

A perfect competitive industry is characterised by:

1. Plenty buyers and sellers of identical goods.

2. Firms that are price takers. Market prices are set by market forces.

3. Free entry and exist of firms

4. Little need for advertising because goods are all identical.

Because wheat is identical with all other wheat, there's little need for advertising and no need for a pricing strategy, wheat is been sold in a perfectly competitive market.

I hope my answer helps you.