MC E. there is no rule for the profit maximizing level of output regardless of market structure. 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. The wool industry is a perfectly competitive industry. The fact that the demand curve facing each wool producer is perfectly elastic. The assumption of free entry into the wool industry. 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.