What is the reason why large, short-run declines in farm prices do not significantly reduce farm production in the short run?
A) Farmers' variable costs are high compared with their fixed costs.
B) Farmers' fixed costs are high compared with their variable costs.
C) Farmers' prices received are greater than prices paid for agricultural products.
D) Farmers' prices paid are greater than prices received for agricultural products.
Correct Answer:
Verified
Q16: The Agricultural Act of 2014 created two
Q99: If the prices of agricultural products fall,
Q101: The short-run instability in the prices of
Q102: The relative price inelasticity of demand for
Q103: When fixed costs are high relative to
Q105: Because the demand for food is relatively
Q106: The inelastic demand for agricultural products means
Q107: Incomes of U.S. farmers are adversely affected
Q108: If the demand curve for wheat is
Q109: The amount of capital used per farmworker
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents