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发表于 2010-2-23 21:53:16
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No.10The following appeared in a letter to the editor of a Batavia newspaper.
"The department of agriculture in Batavia reports that the number of dairy
farms throughout the country is now 25 percent greater than it was 10
years ago. During this same time period, however, the price of milk at the
local Excello Food Market has increased from $1.50 to over $3.00 per
gallon. To prevent farmers from continuing to receive excessive profits on
an apparently increased supply of milk, the Batavia government should
begin to regulate retail milk prices. Such regulation is necessary to
ensure both lower prices and an adequate supply of milk for consumers."
Batavia的农业部门报告说全国奶牛农庄的数量比10年前增加了25%。然而就在同一时期,当地Excello Food
Market牛奶的价格从每加仑$1.5上涨到了$3.0。为防止农场主在牛奶供应量明显增加的情况下获取过多的利润,Batavia的政府应限制牛奶的零售价。这种限价对于保证更低的牛奶价格和充足的供应是必需的。
At first glance, this letter seems to be somewhat convincing, but further reflection tells me that it is flawed in several critical respects.
First of all, the writer assumes that the milk price in Excello Food Market represent the milk price in the Batavia. It is possible that the milk price in Excello Food Market is higher than the average level. If this is true the regulations is no necessary.
In addition, the writer hastily assumes that the supply of milk is apparently increased by the increasing number of dairy farms throughout the country. Primarily, there is no necessary connection between the number of dairy farms and the amount of the milk supply. The dairy farms may change the main produce task from milk to other diary products, and, may be the output of milk is decline through these years.
At the third place, there is no evidence showed that the increased price is unreasonable on an apparently increased supply. First of all, the increase of supply does not mean the enough or over plus. The demand of milk may still exceed the supply of it. That is a reason of increased price. The writer overlooks the price level, on the other hand, which may increase sharply during 10 years. Perhaps other prices have risen on a lager percentage. In either event, the writer could not just rely on the mere fact that milk price has increased sharply to embrace the claim that milk-sale price is unreasonable.
At the fourth place, the letter has another severe flaw that the writer claims the farm owner received excessive profits by overlooks the cost which is an important factor to influence the profit. Through the above mentioned words the writer can not conclude that the higher price is unreasonable and has an excessive profit. The third factor may leads the price change is the cost. Feedstuff may much expensive now than it in 10 years ago. Further more, the higher wage of a worker, the more fees spend on transport or the increasing tax will lead the higher price. Thinking about the two paragraphs above, it is unjustified that the writer just uses the increased sale price as an evidence to support the claim that the farm owner can receive an excessive profit.
Finally, even if the owner actually receive an excessive profit, in asserting the price regulation can help to ensure both lower price and an adequate supply of milk consumers the author neglects the possibility that milk producers would response the regulation by providing less milk. The price regulation will decrease the profits, in common sense, the owners would have less interest in produce milk then they can not ensure the adequate amount of milk supply. Even worse, the government control on the market would possibly disturb the balanced market order.
In conclusion, the suggestion of regulation for milk price is not well supported. To convince me that the price regulation is necessary to ensure a reasonably priced milk supply, the author must provide the valid evidence to support that Excello’s milk prices truly reflects the nationwide prices and the profit from milk sales is really excessive. To make the recommendation more reasonable, the author must also provide how the price regulation would ensure both lower prices and adequate supply of milk.
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