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发表于 2010-9-24 21:53:48
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The author recommends the Batavia government regulate retail milk prices based on two assumption of an adequate supply of milk and undue profits gained by farmers. To strengthen its recommendation, the author points out that the number of dairy farms all over the country is now greater than it was 10 years ago. Also, the author cites that the increased price of milk at the local Excello Food Market. However, the information the author provided lends little credible support to the recommendation.
To begin with, the mere fact that increased number of dairy farms throughout the country compared to 10 years ago hardly substantiates the assumption -the author based on -that there is an adequate supply of milk for consumer in Batavia.
First, the increased number of milk farms all over the country can not indicate that the number of milk farms in Batavia is bound to increase also. If not, in order to have enough milk supply, the milk from other areas comes into the local market. As a result, the price including fees on transportation must be higher instead of lower after restriction.
Second, even if there are more milk farms in Batavia, this solely fact does not amount to adequate milk supply. Perhaps, the milk farms are not productive due to inexperienced worker in some farms opened recently.
Third, the author unfairly assumes that the needs for milk in Batavia remain unchanged over this time span. It is entirely possible that local people prefer to consume milk than before for becoming aware of health or the higher income.
Furthermore, the author unfairly claims that farmers receive excessive profits only rested on the increased price of milk at the local Excello Food Market.
First, lacking evidence that the local Excello Food Market is representative of all market in Batavia, the author can not confidently assume that the milk price increased throughout the Batavia.
Second, profit is a function of revenue and cost. Perhaps the expenditures on producing, transportation, preservation or advertisement are greater than before. Without ruling out these factors, I'm unconvinced by the author's assumption.
Finally, the author didn't account for the influence on the quality of milk after price restriction. Maybe, the lower milk price is at expense of the quality of milk for the reason that milk makers decrease the costs on producing to remain their interests. Without excluding alternative possibility, the author's recommendation about decreasing milk price is flawed as it stands.
In sum, to convince me that the recommendation is desirable, the author should offer more evidence to substantiate that there is an adequate milk supply for consumers in Batavia, that the famers actually gained undue profits, that the quality of milk remains after restriction on milk price. |
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