Problem
1. Explain why a perfectly competitive firm would or would not advertise.
2. Does a Kansas wheat farmer fit the perfectly competitive market structure? Explain.
3. Suppose the market equilibrium price of wheat is $2 per bushel in a perfectly competitive industry. Draw the industry supply and demand curves and the demand curve for a single wheat farmer. Explain why the wheat farmer is a price taker.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.