Preferences have just shifted away from beef and into mutton. If you are a sheep rancher, the best profit-maximizing strategy is to
A) shut down.
B) produce as much as possible to earn profits in the short run.
C) shift some of your ranching capacity into cattle raising.
D) cut prices to increase market share.

Question

Quizplus · Accepted Answer

Given the shift in preferences towards mutton, as a sheep rancher, producing as much as possible to meet the increased demand is the best strategy to maximize profits in the short run. This takes advantage of the higher prices and demand for mutton.

Preferences Have Just Shifted Away from Beef and into Mutton