Which statement is correct?

Question

Quizplus · Accepted Answer

This statement accurately describes the market structure that farmers operate in, where they sell their products in markets where there is significant competition, but they buy inputs from markets that may not be perfectly competitive. Option A is incorrect because farmers, in general, struggled during the Great Depression due to falling prices and reduced demand for their products. Option C is incorrect because government farm subsidies typically go to larger, more established farms rather than low-income farmers. Option D is incorrect because price supports can help to increase production and stabilize markets, but they can also create disincentives for innovation and reduce efficiency in the long term.

Which Statement Is Correct