D. marginal cost can be either increasing or decreasing. The demand for inputs is a derived demand because A. it does not come from competitive markets. B. it depends on the demand for outputs. C. it is derived from nature. D. it is derived from production.
Wheat is produced in a perfectly competitive market.
Market demand for wheat increases. A firm in a perfectly competitive market has no control over price because A. the government imposes price ceilings on the products produced in perfectly competitive industries. B. there is free entry and exit from the industry. C. every firm's product is a perfect substitute for every other firm's product. D. the market demand for products produced in perfectly competitive industries is perfectly elastic.