The milk industry has a number of interesting aspects. Provide economic explanations for the following: a. Fluid milk is 87 percent water. It can be dried and reconstituted so that it is almost indistinguishable from fresh milk. What is a likely reason that such reconstituted milk is not produced?
b. The United States has regional milk-marketing regulations whose goals are to make each of the regions self-sufficient in milk. What is a likely reason for this?
c. A U.S. senator from a milk-producing state has been quoted as saying, “I am absolutely convinced . . . that simply bringing down dairy price supports is not a way to cut production.” Is it likely that he is correct? What is a probable reason for his statement?
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