As a Result of Legislation to Establish a Floor Price

question 138

Multiple Choice

As a result of legislation to establish a floor price for milk, most dairy farmers will

• A)end up earning a normal rate of return in the long run
• B)end up earning a zero rate of return in the long run
• C)end up earning a negative rate of return in the long run
• D)benefit from the increased cost of specialized resources used in dairy farming
• E)suffer if they own specialized resources at the time the legislation is passed

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Definitions:

Rounded

This term refers to adjusting a number to its nearest integer or specified decimal place for simplicity or convenience.

Mean

The average value in a set of numbers, calculated by adding all the numbers together and dividing by the count of the numbers.

Median

The median represents the value that occupies the central position in a dataset once it’s arranged sequentially from lowest to highest or the opposite way.

Quotient

The result obtained when one number is divided by another.