Exhibit 39-3 -Refer to Exhibit 39-3.If P₃ is a target price,the deficiency payment per unit is A)P₁. B)P₂. C)P₃. D)P₃ - P₁. E)P₃ - P₂.

Question

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The deficiency payment per unit is the difference between the target price and the higher of the national average market price or the loan rate. In this case, the higher of the two is P₁. Therefore, the deficiency payment per unit would be P₃ - P₁.

Exhibit 39-3 -Refer to Exhibit 39-3.If P3 Is a Target Price,the Deficiency

Exhibit 39-3 -Refer to Exhibit 39-3.If P₃ Is a Target Price,the Deficiency