Question

Land of Many Lakes (LML) sells butter to a broker in Albert Lea, Minnesota. Because the market for butter is generally considered to be competitive, LML A. can choose quantity of butter that it produces but not the price at which it sells its butter. B. cannot choose either the price at which it sells it butter or the quantity of butter that it produces. C. can choose both the price at which it sells its butter and the quantity of butter that it produces. D. can choose the price at which it sells its butter but not the quantity of butter that is produces.

Answer 1

Answer:

A. can choose the quantity of butter that it produces but not the price at which it sells its butter.

Explanation:

Taking into consideration the characteristic of the market explained in the exercise we would say that it is a Competitive Market.

One of the characteristics of a Perfect Competitive Market is that the price of the products is determined by the market, which means that no single seller can't change or influence the price on its own.

Hope it helps. Good luck.