Question: Assume that soybean production is perfectly competitive. When we study the behavior of the firm, we assume that the demand faced by that firm is

Assume that soybean production is perfectly competitive. When we study the behavior of the firm, we assume that the demand faced by that firm is perfectly elastic. Yet in the marketplace, demand may be highly inelastic. Drawing on the determinants of the elasticity of demand outlined in chapter 2, resolve this apparent paradox.

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