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A March 25, 2010, Article at SunSentinel

question 48

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A March 25, 2010, article at SunSentinel.com reported, "Strawberry farmers in Florida are facing such a sharp collapse in prices for their berries that many are deciding to simply leave huge tracts of the berries to rot in the fields. . . . Wholesale prices that were $17 to $19 for a flat of eight containers have now fallen to $5 to $6 a flat." A March 25, 2010, article at SunSentinel.com reported,  Strawberry farmers in Florida are facing such a sharp collapse in prices for their berries that many are deciding to simply leave huge tracts of the berries to rot in the fields. . . . Wholesale prices that were $17 to $19 for a flat of eight containers have now fallen to $5 to $6 a flat.


Definitions:

Specialize

To focus on a specific area of knowledge, skill, or production, often improving efficiency and quality in the process.

Produce

To create, manufacture, or grow goods and products.

Heckscher-Ohlin Model

An economic theory that proposes countries export what they can most efficiently and abundantly produce, based on their factor endowments of labor, capital, and resources.

Absolute Advantage

The capability of one entity to produce more of a good, product, or service with the same amount of resources than another.

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