. Consider the decision of a farmer, Nicholas, who produces wheat in a perfectly competitive market. a) List three characteristics of a perfectly competitive market. Does wheat appear to meet these conditions? b) The table below shows the fixed and variable costs that Nicholas faces to produce different quantities of wheat. If the current equilibrium price in the wheat market is $15 per bushel, how many bushels of wheat will Nicholas produce and sell? How much profit (or loss) will Nicholas make? Output per Day (bushels) Fixed Cost Variable Cost 0 $10 $0 $10 $10 2 $10 $18 $10 $30 $10 $45 $10 $62 6 $10 $80