Why It Might Be Harder to Find Good Peaches This Summer

There are some hurdles between you and ripe peaches—supply chain issues and driver shortages, scarcity of packaging, labor shortages at manufacturing and production plants, and an inopportune freeze. Prices will run a little higher than in recent years.—tastingtable.com

Answer the following questions to check your understanding of the story.

1) The market for peaches is perfectly competitive. How is the marginal revenue of an individual peach farmer changing?

The individual peach farmer’s marginal revenue is _____________.

a) rising or falling depending on the quantity of peaches the individual farmer harvests

b) falling if the farmer can cut the marginal cost of harvesting his crop

c) rising because the price is rising, and each farmer is a price taker

d) rising if demand for an individual peach farmer’s peaches increases

2) How does an individual peach farmer respond to the “hurdles” described in the news clip?

Faced with “hurdles”, an individual peach farmer _______________.

a) maximizes profit by producing the quantity of peaches at which marginal cost equals marginal revenue

b) produces as many peaches as possible to generate extra revenue to pay for increased costs

c) cuts production to minimize costs and maximize profit

d) stops production temporarily until market conditions improve

Why It Might Be Harder to Find Good Peaches This Summer

Like this:

Leave a ReplyCancel reply

Share this:

Like this:

Leave a ReplyCancel reply

Discover more from Econ Eye