Question

A small farmer is more likely to operate in a perfectly competitive market than a company like SABMiller because:

A. a small business is more likely to keep close control on costs than a large firm.

B. SABMiller employs many people, whereas perfectly competitive firms are owner- managed.

C. the demand for beer is less elastic than the demand for food.

1. a small farmer supplies a small share of market supply.
2. farming is more risky than beer production.

Answer 1

A small farmer is more likely to operate in a perfectly competitive market than a company like SABMiller because a small farmer supplies a small share of market supply.

So, the correct answer is 1.