Unformatted text preview: 4. The Canadian dairy product firm could compete only if it could offset the raw milk cost disadvantage with other cost savings or higher product revenues compared to the US firm. 5. It is one method (recall (P – MC)/P). Estimating the elasticity of the demand curve facing that firm is another. 6. Many factors could cause large farm-to retail margins, not just the reason listed....
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- Winter '11
- Supply And Demand, Demand Curve Facing, Lower farm prices, farm-to retail margins