There Are Two Techniques of Egg Production: Free Range (Where

question 31

Multiple Choice

There are two techniques of egg production: free range (where hens roam around the farm) or factory (where hens are fed and watered in wire cages) . The free range technique has a much more elastic supply curve than the factory technique. When the demand for eggs falls:

• A) egg production using the factory technique falls less than with the free range technique.
• B) egg production using the factory technique falls more than with the free range technique.
• C) the production using both techniques falls by the same amount.
• D) the factory egg producers supply curve shifts inward.
• E) the free range egg producers supply curve shifts inward.

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Definitions:

Co-insurance Clause

A provision in insurance policies that requires the policyholder to bear a portion of the costs of a claim, encouraging insured parties to not underinsure their assets.

Fireproof

A property or material that is resistant to or capable of withstanding damage from fire.

Insured

The individual or entity covered under an insurance policy and protected against specified risks or losses.

Just-In-Time

A management strategy that aligns raw-material orders from suppliers directly with production schedules to reduce inventory costs.