Which of the following is false regarding the agri-food system?
a. Farmers must make decisions upon expected prices and expected yields instead of on known prices and yields.
b. Due to the biological nature of food production, agricultural firms are able to quickly contract or expand in order to adjust to price signals in the market.
c. Seasonal production and consumption increase the time value for commodities and food products.
d. If there is a high degree of asset specificity in the food system, this will increase the fixed costs of firms and make production adjustments costly and slow.
Answer: B
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