PrepTest 70, Section 3, Question 7
If grain prices double then the average price of a loaf of bread will rise between 10 and 15 percent, whereas the price of grain-fed beef will come close to doubling.
If grain prices double then the average price of a loaf of bread will rise between 10 and 15 percent, whereas the price of grain-fed beef will come close to doubling.
If grain prices double then the average price of a loaf of bread will rise between 10 and 15 percent, whereas the price of grain-fed beef will come close to doubling.
If grain prices double then the average price of a loaf of bread will rise between 10 and 15 percent, whereas the price of grain-fed beef will come close to doubling.
Which one of the following would, if true, most contribute to an explanation of the phenomenon described above?
Farmers engaged in very large-scale cattle production generally try to reduce the labor costs involved in the production and sale of beef.
The wholesale price per pound of beef is approximately ten times the wholesale price per pound of bread.
The labor and marketing costs in producing and selling bread represent most of its cost, but the cost of feeding cattle represents most of the cost of producing beef.
Only an insignificantly small proportion of the beef sold in retail markets is produced from cattle fed on grass rather than grain.
The vast majority of retail grocery outlets purchase the bread they sell from small independent bakers but purchase the meat they sell from large wholesale processing operations.
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