passwella.
Menu

WAEC Agricultural Science 1991 (August) Question 55

Question 55

Marketing of Agricultural Produce

What is the effect of stability of market price on a produce? The

  1. A.profit of the producer would be constant if there is no increase in cost of inputs
  2. B.profit of the retailer will be decreased
  3. C.wholesaler will earn more from his sales
  4. D.consumers will willingly buy more of the produce
  5. E.producer and wholesaler will benefit from the ecomomic of large scale production.
Show the answer and explanation

Answer: A (profit of the producer would be constant if there is no increase in cost of inputs)

Explanation

If price and costs stay the same, the producer's profit stays the same.