BSNS108 Lecture Notes - Milk Marketing Board
20 Jan 2017
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Document Summary
Examples of price floors: canadian trucking industry (1950"s-late 1980"s, minimum wage laws. When there are no controls, the low price of agricultural goods means low profits or even persistent losses for farmers. In addition, there will be great fluctuations in the price of agricultural products, total revenue and profit i. e. great uncertainty for farmers. Milk marketing board lower fraser valley formed in late 1950"s. Typical farm: 50 milking cows produced approximately 160,000 quarts per year paid membership fee per year for operation of board. Grubel and schwindt: estimated the approximate supply and demand curves shown below which were used for conclusions below. Main functions: 1) stabilize the price of the agricultural product: raise the average price to increase profitability of farming. Enforcing a quota system is a crucial part of this function. Other functions: advertising, lobbying, provide information to farmers and consumers.
