Imperfect Competition Yields Profits Beyond the Farm Gate: FE1151, 7/2024

Abstract

The purpose of this publication is to look at the other side of the profit equation to explore opportunities for Florida’s small and medium-sized farmers to find ways to improve revenues. We can do this by identifying markets where farmers have some measure of control over how much to charge for their food products. Economists describe markets in which businesses may set their own prices as “imperfectly competitive.” The authors aim to answer these common questions: Why are markets considered imperfect? What does this mean to farmers and buyers? What are the added costs and benefits to farmers who decide to sell into imperfect markets?