Final answer:
The purchasing agent for Pillsbury is likely to use a perfectly competitive market buying method where prices are determined by supply and demand, and growers may switch crops in response to changing economic conditions.
Step-by-step explanation:
The purchasing agent for a Pillsbury mill in Utah, which buys grain from growers in the western region, is most likely to use a perfectly competitive market buying method. In such a market, numerous buyers and sellers trade commodities, in this case, agricultural crops like wheat and corn, that are largely homogeneous. Sellers are price takers, where prices are dictated by the laws of supply and demand. With the ability to easily switch crops in response to changes in relative crop prices, growers adapt their planting decisions based on market signals, which the purchasing agent would consider to get the best possible price.
As demonstrated in the case of the upper Midwest, historically known as "King Wheat," farmers may change the mix of crops they plant if economic conditions favor one crop over another. This adaptability contributes to the dynamic nature of a perfectly competitive market, as shown by the 1997 statistics from North Dakota where 11.6 million acres of wheat and 780,000 acres of corn were planted. The purchasing agent would thus survey the market, analyze the prices, and buy based on the going rate for grain in such a competitive environment.
Figure 8.1 from our reference material indicates that factors like competition and prices offered will influence a farmer's decision to grow different crops, which is something the purchasing agent would need to account for when entering the market to buy grain.