Questions: Question 3 1 pts If the wheat industry is perfectly competitive with a market price of 4 per bushel and Farmer Brown charged 5 per bushel, how many bushels would Farmer Brown sell? more than he would at a price of 4 none some, but fewer than he would at a price of 4 just as many as he would at a price of 4 More information is needed about the prices charged by the other wheat farmers.

The answer is the second one: none.

Explanation for each option:

• More than he would at a price of \$4: In a perfectly competitive market, all firms are price takers, meaning they must accept the market price. If Farmer Brown charges more than the market price, consumers will buy from other farmers who are selling at the market price of \$4. Therefore, he would not sell more than at the market price.

• None: This is the correct answer. In a perfectly competitive market, if Farmer Brown charges \$5 per bushel while the market price is \$4, he will not sell any bushels because consumers can purchase the same product for less from other farmers.

• Some, but fewer than he would at a price of \$4: This option is incorrect because, in a perfectly competitive market, consumers will always choose the lower-priced option, meaning Farmer Brown would not sell any bushels at a higher price.

• Just as many as he would at a price of \$4: This is incorrect because, in a perfectly competitive market, charging above the market price results in zero sales, as consumers will buy from other sellers at the market price.

• More information is needed about the prices charged by the other wheat farmers: This is incorrect because, in a perfectly competitive market, it is assumed that all other farmers are selling at the market price of \$4. Therefore, no additional information is needed to determine that Farmer Brown would sell none at \$5.

In summary, in a perfectly competitive market, charging above the market price results in zero sales, so Farmer Brown would sell none.