Price discrimination does not occur in perfectly competitive markets, such as the market for wheat. Which of the following explains why farmers do not charge different buyers different prices for wheat? Each buyer has the same willingness to pay for wheat as every other buyer of wheat. Because wheat is a homogeneous product, any bushel of wheat must sell at the same price as every other bushel of wheat. O Farmers don't use price discrimination to sell wheat because this would lead to an increase in the number of wheat farmers. This would lower profits wheat farmers would earn in the long run. The cost of using price discrimination to sell wheat would be greater than the profits that would result from price discrimination.

Price discrimination does not occur in perfectly competitive markets, such as the market for wheat. Which of the following explains why farmers do not charge different buyers different prices for wheat? Each buyer has the same willingness to pay for wheat as every other buyer of wheat. Because wheat is a homogeneous product, any bushel of wheat must sell at the same price as every other bushel of wheat. O Farmers don't use price discrimination to sell wheat because this would lead to an increase in the number of wheat farmers. This would lower profits wheat farmers would earn in the long run. The cost of using price discrimination to sell wheat would be greater than the profits that would result from price discrimination.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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