What is the effect of stability of market price on a produce? The
-
profit of the producer would be constant if there is no increase in cost inputs
- profit of the retailer will be decreased
- wholesaler will earn more from his sales
- consumers will willingly buy more of the produce
- producer and wholesaler will benefit from the economic of large scale production
The correct answer is: 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.