Question

Many economists believe that the market for wheat in the United States is an almost perfectly competitive market. If one firm discovers a technology that makes its wheat taste better and have fewer calories than all other wheat offered in the market, the wheat market would become less competitive becausea. there would no longer be many buyers and many sellers of wheat.
b. it would no longer be easy to enter and exit the existing wheat market.

c. the products would no longer be similar in the wheat market.

d. the government would want to intervene.

e. individuals would not want to switch products.

Answer 1

Answer:

C. The products would no longer be similar in the wheat market.

Explanation:

Obviously, when the market is perfectly competitive, this means that all the firms in the market are making a similar product and the consumers have a lot of choice. But when one firms discovers a new technology which could change the taste of wheat and have fewer calories, then this means that the products in the market are not similar now and customers would move towards the particular firm that is using the new technology.

Hope this helps.

Good Luck.

Answer 2

Answer:

Many economists believe that the market for wheat in the United States is an almost perfectly competitive market. If one firm discovers a technology that makes its wheat taste better and have fewer calories than all other wheat offered in the market, the wheat market would become less competitive because the products would no longer be similar in the wheat market- Option c.

Explanation:

Option c is the correct answer- the products would no longer be similar in the wheat market, the reason being that people with different taste preferences would prefer either of the two kinds of wheat available in the market, therefore making them less concentrated.