If the same dairy can produce either full cream milk or skimmed milk, an increase in the profitability of full cream milk results in

Name: If the same dairy can produce either full cream milk or skimmed milk, an increase in the profitability of full cream milk results in
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Question

Quizplus · Accepted Answer

An increase in the profitability of full cream milk would incentivize the dairy to allocate more resources to producing full cream milk, thereby decreasing the supply of skimmed milk.

If the Same Dairy Can Produce Either Full Cream Milk