Sugarcane Can Be Used to Produce Both Granulated Sugar and Ethanol.Recent

question 88

Multiple Choice

Sugarcane can be used to produce both granulated sugar and ethanol.Recent regulations in certain countries now permit a higher amount of ethanol to be added to gasoline.An economist would expect sugarcane prices to ____, and quantity sold to ____.

• A)rise; rise.
• B)fall; fall.
• C)rise; fall.
• D)fall; remain the same.

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Definitions:

Natural Monopolies

Industries where a single firm can supply a good or service to an entire market at a lower cost than two or more firms could, often due to economies of scale.

High Set-up Costs

Initial investments or expenses that are necessary to start a business or manufacturing process, which can act as a barrier to entry for new firms.

Industry

A sector of the economy that produces a specific type of goods or services, characterized by shared production processes or products.

Exclusive Right

A legal provision or agreement granting someone the sole authority to use, sell, or license a product, service, or intellectual property.