Explain Why Abrupt Changes in Farm Output Have a Magnified

question 31

Essay

Explain why abrupt changes in farm output have a magnified effect on market prices.

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Definitions:

Profit

The financial gain obtained when the revenue from business activities exceeds the expenses, costs, and taxes involved in maintaining the activity.

Market Share

The percentage of total sales revenue in an industry generated by a particular company.

Efficiency

The ability to accomplish a job with a minimum expenditure of time and resources.

Hydraulic Fracturing

A method used to extract underground resources like oil and natural gas by injecting fluid into the ground at high pressure.