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3.4 Market structures

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Question 26

In Provence, France, numerous small-scale agriculturalists cultivate fresh lavender of identical quality. Pierre decides to harvest and sell lavender bunches at the regional cooperative, anticipating a normal profit. He observes that there are hundreds of sellers, all price-takers charging the exact same market price.

Draw diagrams showing the equilibrium positions for both the lavender market and a typical firm (Pierre's business) in the long run.

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3.4 Market structures Questions

  1. A Level
  2. /Economics
  3. /3.4 Market structures