Question #6 Multiple Choice
Which of the following explains why James, who operates an apple orchard that sells a very rare type of
gourmet apple, would probably choose NOT to participate in contract production?
He operates as a price-taker that so there is no need to contract.
His rare commodity offers an increased cash flow and an expansion of operation
As a seller of a rare commodity he is in a position to negotiate higher prices than commodity food
producers
Because he independently grows a unique product, he is already locked in to the best price of the
market
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