2006-09-15 01:12:12 · 4 answers · asked by marri geet 1 in Social Science ➔ Economics
producers don't fix prices for their products in a free market... the market does...
2006-09-15 01:19:58 · answer #1 · answered by Andy FF1,2,CrTr,4,5,6,7,8,9,10 5 · 0⤊ 1⤋
Commodities like food, or oil aren't like Microsoft. Corn farmers are competing with other corn farmers producing the exact same thing. No one else produces Windows. So it's not the same thing. It's a little closer to something liek generic drug makers. Lots of people buy aspirin and aspirin is pretty much aspiring no matter who you buy it from. The reason aspirin isn't acommodity is because they (more or less) sell it directly to the end user. Farmers sell to middle men unless it's a local farmers market in which case the farmer DOES set the price. So why don't farmers get together and set the price? It's illegal
2006-09-15 08:28:48 · answer #2 · answered by Scott L 5 · 0⤊ 0⤋
Sorry that's not the way it works. Because in a free market the buyer and seller must agree upon a price. If either doesn't agreed there is no trade.
Farmers always have the option to refuse to sell. Their problem is in most cases they have a perishable product if not sold and processed in a timely manner it becomes worthless.
Whereas the standard widget manufacturer can just put the widget on the shelf if he doesn't like the price being offered.
2006-09-15 13:44:51 · answer #3 · answered by Roadkill 6 · 0⤊ 0⤋
farmers are like all other producers of products.
There is a certain point at which folks will buy the goods.
unfortunately, because of the nature of commodities big buyers sometimes have a good deal of influence on what these prices are.
2006-09-16 09:44:38 · answer #4 · answered by Intersect 4 · 0⤊ 0⤋