If the relative market price of producing cotton is more than the opportunity cost of producing it in the South,

Question

Quizplus · Accepted Answer

When the market price of producing cotton exceeds the opportunity cost of producing it, producers are incentivized to increase production because they can earn more than the next best alternative use of their resources. This leads to an increase in the supply of cotton in the long run as producers respond to the profit opportunity.

If the Relative Market Price of Producing Cotton Is More