Which is true of commercial producers in developed countries?
A. They suffer from greatly decreased yields.
B. They must plant fallow crops per government regulations.
C. They rarely receive government subsidies.
D. They control prices by adjusting their output.
E. They face stagnant demand in domestic markets.
Answer:
D. They control prices by adjusting their output
Explanation:
Considering the question is relating to commerical producers of agricultural products.
Commercial Agricultural producers in developed countries tend to control prices by adjusting their output. This is due to following reasons:
1. Instability of prices
2. Instability of income
3. Government intervention: such as levies and tarrifs
4. Cost of production.
Hence, the correct answer is that, they control prices by adjusting their output in order to combat the aforementioned issues.
