What is the effect of stability of market price on a produce? The
A.
profit of the producer would be constant if there is no increase in cost inputs
B.
profit of the retailer will be decreased
C.
wholesaler will earn more from his sales
D.
consumers will willingly buy more of the produce
E.
producer and wholesaler will benefit from the economic of large scale production
Correct Answer: Option A
Explanation
If market prices are stable and the cost of inputs does not increase, the producer can maintain a constant profit margin. This stability is crucial for long-term planning and sustainability in the business environment.
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